A recent report by the Society of Chartered Surveyors Ireland (SCSI) and Trinity College Dublin has identified Zurich and Dublin as the most expensive cities in Europe for apartment construction. The study, which compares the cost of building identical apartment units across ten European cities, highlights the stark differences in construction expenses continent-wide.
High Construction Costs in Zurich and Dublin
According to the data, constructing a standard block of 39 apartments over seven or more storeys in Zurich costs approximately €2,866 per square meter, the highest among the cities surveyed. Dublin follows closely behind with a construction cost of €2,363 per square meter. These findings underscore the financial challenges faced by developers in these cities, which could have broader implications for housing affordability and urban development.
Comparative Analysis Across European Cities
The report's benchmark was a typical apartment block containing mostly two-bedroom units. Besides Zurich and Dublin, Manchester, Stockholm, and Glasgow also feature high on the list. Conversely, cities like Birmingham, Amsterdam, Brussels, and Belfast are more affordable, with Tallinn in Estonia being the cheapest at €1,367 per square meter—significantly below the 10-city average of €2,057 per square meter.
Breakdown of Construction Costs
The study examined both 'hard' costs (materials) and 'soft' costs (professional fees and taxes). Bryn Griffiths, Vice Chair of the SCSI Quantity Surveying Professional Group Committee, noted, "This survey compared the price of a Swiss apartment block if it were built in the ten cities, and it is clear that this design is architecturally very different to what we would deliver in Ireland."
Griffiths suggested that more flexible planning policies in Ireland could help reduce construction costs. Despite being somewhat cheaper for structural works, Dublin's overall high costs are driven by expenses related to services and equipment (such as heating and elevators) and non-structural works (like floors, windows, and carpentry).
Impact on Housing and Homelessness in Dublin
The report comes at a critical time for Dublin, where housing shortages are a significant issue. The Central Statistics Office of Ireland reported that 13,866 adults and children were in homeless accommodation as of March 2023, a 16% increase from the previous year. High construction costs contribute to the city's ongoing struggle to build enough housing to meet demand.
Labour Costs and Regional Variations
The analysis revealed that resource prices are more stable than labour costs across the surveyed cities. For instance, Estonia has an average hourly construction labour cost of €16.50. In contrast, central European cities like Zurich, Vienna, and Berlin face much higher labour costs, influencing the overall expense of construction.
Future Research and Considerations
The authors of the report emphasized the need for further research to compare additional factors such as land prices and regulatory costs. It is also important to note that the figures are based on data from the first quarter of 2020, prior to the pandemic and subsequent energy price shocks, which have since driven construction costs even higher.
As Brussels and other European cities grapple with the economic implications of these findings, policymakers and industry stakeholders must consider innovative solutions to manage and reduce construction costs, ensuring sustainable urban development and affordable housing for all residents.
This comprehensive report provides valuable insights into the varying costs of apartment construction across Europe. By highlighting the financial burdens in cities like Zurich and Dublin, it underscores the need for strategic planning and policy adjustments to address the housing crises and support sustainable growth in the urban environment.
Source: Euronews
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