Hong Kong is most expensive country to build in

Hong Kong has been named as the most expensive country to build in followed by Switzerland, Denmark, Sweden and Macau.

A new report published by consultants EC Harris found that construction costs in the UK have fallen over the last 12 months, helped by a combination of the weak pound and inflation in some European markets.

EC Harris’s annual study benchmarks 47 countries. It found the cheapest locations to build are India, Indonesia and Vietnam where construction costs are up to 40% less than in the UK.

Simon Rawlinson, head of strategic research and insight at EC Harris, said: “Currency fluctuations have had a substantial effect on relative construction costs over the past year, particularly the fall of the Yen and the appreciation of the Chinese Yuan – this not only makes Chinese imported materials to other countries more expensive, but has also contributed to China moving nearly half way up the global rankings.

“There could be a knock-on effect in the UK in 2014 if the construction recovery takes hold, with more expensive imported materials contributing to the potential for inflation in UK construction markets.”

The UK ranks at number 14 in the table, one place above Qatar.