Sri Lanka the cheapest place in the world to build

Sri Lanka and India are tied as the cheapest countries in which to build with construction costs estimated to be 72% cheaper than the UK baseline, according to one consultancy group study. 

The current economy plays a significant role, but analysts contend supply chains and other logistical issues faced by these countries also act to raise costs. 

Sri Lanka was also the cheapest country in the 2010 edition of the report with the cost of construction just 27% of the UK.

The EC Harris annual International Construction Cost Comparison Report rates the building costs of all countries and has given first place to Switzerland, followed by Denmark and Sweden, making it the most expensive place to build in the world second year running.

The annual report, which benchmarks the construction costs in 55 countries across the globe using UK prices as a baseline, found that Europe continues to be the most expensive continent in which to build, providing eight of the top 10 entrants in the final league table.

In Asia Pacific construction prices across the region show huge variations. Whilst Australia is an expensive place to build, cheap labour mean that construction costs across most of the region are substantially lower than the level in the UK. Singapore and Hong Kong are both deemed to be 10% cheaper than the UK although this figure is likely to close over the coming year.