The tough conditions facing the construction sector persisted throughout 2022. Our International Construction Costs 2023 report reveals how inflation, construction costs, finance costs and energy prices have all continued to rise, resulting in fewer transactions and tumbling asset values.

The report explores how investors and owners can take advantage of the opportunities arising from the current downturn, including an actionable five-point plan to plan for future success as the market stabilizes.

Here are five insights you need to know:

• London drops to the second most expensive city to build in the world.
• UK and Ireland cities rank highly with seven within the top 25 most expensive locations for construction.
• The twin challenges of global inflation and net zero compliance accelerated construction costs worldwide.
• Despite high material inflation, the UK market remained resilient in 2022, with the housing, industrial and infrastructure sectors driving growth.
• Owner, occupier and investor demand for low-carbon performance and climate change resilience is increasing construction costs, as well as long-term value.