Hong Kong, 04 July 2025 – Arcadis has released its highly anticipated International Construction Costs (ICC) 2025 report, which reveals that Hong Kong has achieved a lower ranking compared to 2024, from 9th to 10th. This shift reflects the trend of reduction in construction costs, signalling increased affordability and enhanced competitiveness in the global construction market. Hong Kong’s change in position on the list reflects its ongoing efforts in managing costs while striving to maintain its appeal as a hub for investment and development.
The ICC report, published annually by Arcadis, provides a comprehensive comparison of construction costs across 100 of the world’s largest cities across six continents. The cost comparison covers twenty different building types, including residential, commercial, and public sector developments, and is based on a survey of construction costs, a review of market conditions, and the professional judgement of Arcadis’ global team of experts. The calculations are based in USD and indexed against the price range for each building type relative to Amsterdam. It serves as a valuable benchmark for affordability, market trends, and economic conditions in the construction sector.
The improved ICC 2025 ranking of Hong Kong is positive news for developers, investors, and stakeholders. It highlights Hong Kong's efforts to reduce construction costs through technological innovation, enhanced procurement strategy, etc. while continuing to uphold its reputation for providing high-quality infrastructure. This progress strengthens the city’s position as a competitive and attractive destination for large-scale developments, infrastructure investments, and urban growth.
"Hong Kong’s enhanced cost competitiveness reflects its commitment to technological innovation and efficiency in construction, and continued efforts are expected to further improve the reduction of construction costs in the coming years." stated William Fong, Head of Cost and Commercial Management for Hong Kong & Macau. "This advancement not only supports economic growth but also opens new opportunities for sustainable and affordable development," William added.
Hong Kong remains dedicated to further enhancing its construction sector by investing in cutting-edge technologies, sustainable practices, and streamlined processes. With a positive trend in affordability, the city is well positioned to meet future demands and attract global partnerships for development projects.
For more information, the full report can be downloaded here.
