Building in Amsterdam is and remains relatively attractive on a global scale. Nevertheless, the capital of the Netherlands rose three places to spot 62 on the International Construction Cost Index 2025 (ICC) and is relatively more expensive to build with a 3.2 per cent increase. The ICC is an international survey of construction costs by consultancy and engineering firm Arcadis among 100 global cities. Last year, Amsterdam was ranked 65th and in 2023 also 62nd.
The most expensive cities to build are Geneva, London and Zurich. At the bottom of the list are Kuala Lumpur, Bangalore and Buenos Aires.
© Funda.nl
A detached villa is being built on Osdorperweg in Amsterdam, for sale for €1,595,000 with no additional costs. PHOTO FUNDA
The construction industry has quite a few bumps to overcome. The whole of the Netherlands is now struggling with grid congestion, which means we cannot simply connect new homes to the electricity grid. Realising a more robust grid takes time. A first step could be to map the energy needs of an area and then take targeted measures that can be realised quickly. Nitrogen is and remains an ongoing problem file, for which we do not yet have an adequate solution.
Suitable housing
For first-time buyers, it is almost impossible to get a house on both the rental and the owner-occupied market. 'We really need to do something to let young people spread their wings and at the same time do something for the elderly,' says City Executive Arrèn van Tienhoven of Arcadis. 'The big question is how to get everyone into the right housing. First of all, I am thinking of building cheaper houses of all shapes and sizes, without sacrificing housing quality. In addition, we really need to change rules to make more housing in existing buildings. If we succeed in creating significant numbers of smaller and affordable homes, this will ensure circulation and reduce pressure on the housing market. This requires concessions from government, market and house seekers.
Shrinkage
Total construction output fell by 3 per cent last year. New construction projects then struggled to take off, with housing production down 5 per cent and non-residential construction down 11 per cent. Even infrastructure fell by 1.5 per cent. The number of new residential building permits rose 24 per cent to 67,000 last year. Other major projects in the pipeline include a planned EUR 6 billion investment at Schiphol Airport, to be implemented over the next five years.
'Although there is still a need for construction projects in the Netherlands, affordability and financial viability continue to delay the start of projects,' said Arcadis' commercial manager Cost & Data Management Ted Peek. 'Insight into costs and cost developments, proactive management of costs and residual value as well as fair settlement are essential to keep building projects affordable and feasible.'
Most expensive cities:
1. Geneva
2. London
3. Zurich
4. Munich
5. New York
6. Copenhagen
7. San Francisco
8. Bristol
9. Dublin
10. Hong Kong
100. Buenos Aires
99. Bangalore
98. Kuala Lumpur
97. Delhi
96. Johannesburg
95. Ho Chi Minh
94. Mumbai
93. Chengdu
92. Wuhan
91. Nairobi
The Arcadis International Construction Costs (ICC) Index 2025 compares 100 global cities when it comes to construction costs. To make the comparison between cities, the costs have been indexed, with Amsterdam counting as 100. Besides the comparison between cities, the report also provides global insights into the construction market and recommendations for market players.
Click here to download the report.