Consultant says hikes in some countries could be as much as 7%
Currie & Brown has said construction costs in the UK could rise by up to 4% this year.
The consultant said rises of between 3% and 4% this year were expected with the firm saying the hikes will be driven by labour shortages and possible trade tariffs.
It added: 鈥淭here is also uncertainty around the impact of increased National Insurance contributions for employers, which could undermine business confidence and imperil economic progress.鈥�
Currie & Brown said costs will rise across all global regions and most markets, driven by a shared set of factors including economic uncertainty and labour shortages.
It also said the rise of AI would create opportunities for growth but added: 鈥淭hat growth will also generate intense competition for scarce and specialised materials, notably for projects in the technology sector, adding significantly to global construction costs.鈥�
Countries expected to see the biggest rises of up to 7% include Saudi Arabia and India with Australia seeing a rise of up to 6%. It added the US will see a rise of 4% in construction costs this year.
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