"Global construction volume is on the up and the future is looking bright. But the industry faces more work with fewer workers. The challenge for the supply chain is how to convert this increased output into profit."
Three new markets entered the analysis for the first time this year: Ho Chi Minh City, Jakarta and Shanghai.
Global construction costs are expected to rise 4.3 percent in 2018 following a 4.0 percent rise in 2017.
21 of the 46 markets measured are expected to warm up in 2018, just two are expected to cool.
New York once again holds the top spot for highest construction costs, ahead of Zurich.
Perth and Muscat were the only two markets to see falls in construction costs.
Five markets were identified as running hot and three, Amsterdam, San Francisco and Seattle, were seen to be overheating.
There are signs that some weaker performing commodity driven markets are set to warm in 2018, notably Perth and São Paulo.
The USA is enjoying rapid economic growth, European markets are catching up, China continues to surprise but there is uncertainty in the UK due to Brexit.
Markets are considered warmer as competition decreases and prices begin to rise, as demand increases in relation to supply.
Use the tool below to access the full data breakdown for the individual market of your choice or compare different markets around the globe.
New York City retained its position as the most expensive place to build in the world even though building spend dipped in 2017. But that was from an all-time high in 2016 and growth in construction spending is set to resume in 2018 stretching resources.
|Top five most expensive places to build|
|1. New York|
|2. San Francisco|
|3. Hong Kong|
Last year’s report noted a rise from 20 to 24 markets registering skills shortage. This year the number has risen to 27, albeit from a slightly larger sample.
The average margin globally in 2018 was 6.4 percent, but margins ranged between 15 percent in Kuala Lumpur to 3 percent in Northern Ireland. In broad terms, changes within a given market over a short period are one indicator to take into account when assessing market activity and cost pressures.
Opportunities to improve the efficiency of the construction sector and reduce costs are also opportunities to grow the global economy faster.