- New report from Turner & Townsend reveals Harare is the most expensive African construction market at US$2,042 per m2, more than US$800 more than Lagos, in second (US$1,183).
- Good labour availability and access to materials have maintained low construction costs at an average of just US$1,180 per m2 across the continent – despite volatile local currencies.
- New York City and San Francisco top the table for average construction costs globally, at US$5,744 and US$5,504 per m2 – as demand proves resilient to geopolitical disruption.
Limitations of logistics and a lack of supply chain capacity in the African construction market risks creating a barrier to investment, says new report from global professional services firm Turner & Townsend. These factors risk impeding progress across Africa where opportunities from renewables to rare earth metals are providing strong foundations for growth.
The Global Construction Market Intelligence (GCMI) report 2025 reveals that across Africa, average construction costs remain low, at US$1,180 per m2. Despite some local currency fluctuations impacting construction costs in dollar terms, such as inflation of 45.0 percent in Lagos in 2024, most regions are stable, with good general labour availability and access to materials, and relatively little impact of recent global trade negotiations due to economies not being closely tied to America.
The continent is seeing growing populations, increasing spending on renewable energy in East Africa in particular, and significant investment in modernisation and urbanisation. This, combined with low construction costs, offers an appealing outlook for investment, and is creating a strong sense of optimism in many areas. For example, in Kenya, where costs in the capital average US$834 per m2, a focus on providing cheap, plentiful, sustainable power is combining with a stable currency and low import duties to draw in investment.
South Africa, traditionally one of the strongest African construction markets, is seeing the benefits of overall economic recovery and political stability provided by a Government of National Unity. However, inflation driven by high fuel prices remains a concern. The GCMI shows costs in Cape Town and Johannesburg sit at an average of US$1,171 and US$1,141 per m2, rising 8.0% and 7.4% respectively in 2024.
Meanwhile countries including Uganda, Zimbabwe and Rwanda, are seeing investment in social infrastructure and leisure rebuilding construction supply chains after decades of relative instability – encouraging new business to enter these markets despite.
However, the report identifies risks that may impact this growth story – including historic underinvestment in logistics networks, which are a challenge for large-scale investment in the manufacturing and industrial sector. The continent also has a limited number of top-tier contractors able to take on larger programmes.
To prevent programmes being impacted, clients need to take a more active role within this area to bridge the gap where there are shortages – directly investing in training local skills, or bringing in international expertise where needed.
Wendy Cerutti, Director, Regional Real Estate lead, Africa, at Turner & Townsend, said:
“There are plentiful signs for optimism across Africa, with growing opportunities to drive investment that supports economic diversification. As well as the greater urbanisation and development of social infrastructure we’re seeing on the back of many regions’ growing populations, there is also a significant focus on high-tech industries from advanced manufacturing to data centres, as well as major government spending on renewables.
“The counterpoint to growth is that it comes with supply chain challenges – making labour and logistics the priorities for clients. Important shortages are now emerging in terms of top tier contractors and specialist skills, which clients need proactively manage by taking greater ownership of construction infrastructure and directly building up the skills they need either locally or through importing labour. Doing this successfully will require programmatic thinking from clients to derisk projects.”
From analysis of 99 markets globally, the GCMI shows the US maintaining a strong hold on the top rankings of the most expensive places to build. Five US cities are in the top ten. New York is in first place, with an average cost of US$5,744 per m2, followed by San Francisco at US$5,504. Los Angeles (US$4,786) is sixth, with Chicago seventh (US$4,695) and Philadelphia in ninth (US$4,604).
Africa rankings:
| Ranking (/99 markets) | Cost per m2 (US$) | 2024 construction cost inflation (%) | 2025 construction cost inflation (%) | Wages / hour (US$) | |
| Harare | 72 | 2,042 | 5.0 | 10.0 | 3.4 |
| Lagos | 81 | 1,183 | 45.0 | 25.0 | 0.8 |
| Cape Town | 82 | 1,171 | 8.0 | 4.5 | 6.8 |
| Johannesburg | 85 | 1,141 | 7.4 | 3.2 | 5.1 |
| Kampala | 87 | 1,057 | -3.0 | 1.0 | 4.7 |
| Gaborone | 88 | 1,035 | 2.5 | 4.0 | 1.5 |
| Kigali | 89 | 979 | 6.0 | 5.0 | 3.1 |
| Nairobi | 95 | 834 | 2.0 | 4.0 | 1.3 |
Top 10 global rankings:
| Region | Ranking (/99 markets) | Cost per sqm (US$) | 2024 construction cost inflation (%) | 2025 construction cost inflation (%) | Wages / hour (US$) | |
| New York City | North America | 1 | 5,744 | 3.25 | 3.5 | 131.4 |
| San Francisco | North America | 2 | 5,504 | 3.5 | 4.0 | 117.5 |
| Zurich | Europe | 3 | 5,386 | 0.7 | 1.0 | 117.9 |
| Geneva | Europe | 4 | 5,386 | 0.6 | 1.0 | 117.9 |
| London | UK | 5 | 5,385 | 2.0 | 3.0 | 56.8 |
| Los Angeles | North America | 6 | 4,786 | 2.3 | 4.0 | 71.4 |
| Chicago | North America | 7 | 4,695 | 3.5 | 3.5 | 79.5 |
| Tokyo | Asia | 8 | 4,647 | 5.8 | 5.6 | 29.1 |
| Philadelphia | North America | 9 | 4,604 | 3.0 | 5.0 | 107.9 |
| Sapporo | Asia | 10 | 4,577 | 5.8 | 5.6 | 24.2 |
