In 2024, ****** was still the most expensive UK city for office construction. This was true at least for the cities included in the list, and it applies to prestige and A-Grade offices. Both A-Grade and prestige offices in London were more expensive than any type of office construction in Birmingham, Manchester, Glasgow, or Leeds. After London, Cambridge and Oxford are also some of the other UK cities with the highest house prices in 2023. Office rents in London Not only did London prove to have high building costs, rents for prime offices were equally high, with the West End core as the most expensive districts in the city. The area to the North of Buckingham Palace is known for its exclusive townhouses largely owned by the foreign elite and upscale hotels and restaurants. Stratford and the rest of the Docklands were the cheapest districts in London. Office investments in the UK In the last quarter of 2023, the value of office investments in London increased slightly in comparison to previous quarters. Investments in the City and Southbank, however, dropped in value. The volume of investment in commercial real estate in the UK fluctuated a lot in the past months, with some years showing high volumes of investment in office real estate, and other months where those values fell rapidly.

In 2024, London had the highest construction costs for manufacturing facilities and warehouses among the cities of the United Kingdom included in this list. Building an advanced industrial plant in Manchester cost ***** British pounds per square meter. The figures in Leeds, Birmingham, Glasgow, and Manchester were somewhat similar. Certain areas of London, such as Park Royal, Canning Town, and Acton, had some of the highest rent of new small warehouse units in the UK in 2022. What factors determine construction costs? The cost of labor in construction in the UK amounted to nearly ********** of the overall income in that sector. Apart from the salaries of employees and workers, the price of land and machinery are also quite important. Another element that can be subject to a lot of change is the price of building materials, with the price of concrete re-inforcing bars in the UK growing by nearly ** percent in 2022. However, construction projects also face other costs, such as fees and other administrative costs. Industrial land prices Some components that affect the final cost of constructing warehouses and manufacturing facilities can vary a lot within the same country. For example, salaries tend to be higher in large cities. Along the same lines, the price of industrial land in North London was well over *** times higher than in Edinburgh in 2022. However, these disparities are not as pronounced in every country. Although certain areas of Warsaw had very high prices, industrial and warehouse land prices in other Polish cities such as Poznan, Wroclaw, or Krakow were higher than in the zone III of Warsaw.

London and Munich were among the most expensive cities in Europe for the construction of warehouses in 2024, while advanced manufacturing facilities were the most expensive in Amsterdam. Meanwhile, among the selected cities, Paris had the lowest construction costs for warehouses. However, construction costs do not always follow the same trends as commercial real estate in Europe, with sale prices differing significantly in some cases. Warehouse take-up in Europe These high construction costs in the largest cities probably affect the take-up of large warehouses European cities. Instead, Birmingham in the United Kingdom (UK) came in first in 2023, with roughly 913,000 square meters of warehouse space spread throughout the municipality. Of the first ten entries, two werelocated in the UK, which makes it one of the most popular warehouse locations. Retail warehouse rental prices London was the UK region with the highest bix-box warehouse rent prices. As of the last quarter of 2023, roughly 28.5 British pounds were paid per square foot. This was more than twice the amount paid for the same type of buildings in the West Midlands. London was also the European city with the highest rent for warehouses, with Oslo and Helsinki following far behind.

The Swiss cities of Geneva and Zurich had some of the highest construction costs in Europe, with a price of well over ***** U.S. dollars per square meter built as of 2024. London was the third city at ***** U.S. dollars per square meter, closely followed by Munich and Dublin. When it comes to the construction cost of education buildings in the UK, Glasgow was more expensive than London. However, this is an exception, as generally, London is the most expensive city to build in the UK.

In the UK, renting an office space was the most expensive in London West End in 2024. In the third quarter of the year, the square foot cost of a prime office space cost 142.5 British pounds. In Leeds, renting an office was much more affordable, at 40 British pounds per square foot.

In the first quarter of 2025, London West End - Bond Street was the most expensive location for prime high street rents in the UK, with prices reaching 2,500 British pounds per square foot. The West End was ranked ahead of London City, which came in third. In Manchester, the annual costs of rental per square foot of prime retail real estate amounted to 235 British pounds. Retail warehouses Retail warehouses typically range from 50,000 to hundreds of thousands of square feet. They are used for keeping and distributing inventory. Retail warehouses include loading docks, truck doors and large parking lots; also, they may contain a limited amount of office space. Prime retail warehouse properties belong to the wider category of industrial property, along with other real estate types, such as distribution buildings, showroom facilities, manufacturing buildings, cold storage facilities, telecom or data hosting centers, "flex" buildings denoting more than one industrial or commercial facility housed in the same building, and finally R&D buildings. Prime yields of high street retail across Europe Retail real estate prime yields in Europe were the lowest in Zurich, Switzerland, and the highest in Bucharest, Romania in 2025. As could be expected, larger cities in Europe tended to produce lower yields, due to the lower risk associated with these markets. Locations with lower yields tend to have steady occupancy rates and rental growth.

The European green building market is experiencing robust growth, projected to reach a substantial market size. Driven by stringent environmental regulations, increasing energy costs, and a growing awareness of sustainability among consumers and businesses, the market shows a Compound Annual Growth Rate (CAGR) of 11.04% between 2019 and 2033. This expansion is fueled by several key factors. Firstly, the rising adoption of green building certifications like LEED and BREEAM incentivizes developers and building owners to incorporate sustainable design and construction practices. Secondly, technological advancements in green building materials, such as energy-efficient windows, advanced insulation, and renewable energy systems, are making green building more cost-effective and accessible. Finally, government initiatives and financial incentives, including tax breaks and subsidies, play a significant role in accelerating market growth. The market is segmented by product type (exterior, interior, and other products) and application (residential, office, retail, institutional, and other applications). While the residential sector currently holds a significant share, the commercial sector is anticipated to experience rapid growth driven by corporate sustainability goals and the increasing demand for energy-efficient office spaces. Major players in this dynamic market include Bauder Ltd, AECOM, Skanska, Turner Construction Company, DuPont de Nemours Inc, Wienerberger, Alumasc Group PLC, Forbo International SA, HOLCIM, and Kingspan Group PLC, along with numerous other companies contributing to the innovative solutions shaping the future of sustainable construction across Europe. The market's expansion is geographically diverse. Germany, the United Kingdom, France, Spain, and Italy represent key markets, each exhibiting varying growth rates influenced by their respective regulatory frameworks and economic conditions. The "Rest of Europe" segment also contributes significantly, underscoring the widespread adoption of green building practices across the continent. While precise regional market shares require further data, the overall market outlook remains extremely positive. The sustained growth trajectory is expected to continue throughout the forecast period (2025-2033), driven by ongoing innovation, increasing policy support, and a growing global commitment to environmental sustainability. This presents significant opportunities for both established and emerging players in the green building industry across Europe. Recent developments include: December 2023: UBM Development received a steady stream of preliminary building permits in Munich. The initial building permit for the commercial project “Timber Works” developed by UBM in Munich is legally binding. Planned with a timber hybrid design, the building will be constructed on a plot of land of approx. 6,500 m2 on Pelkovenstraße 148 will offer over 9,650 m2 gross floor area., October 2023: With an eye on 2045, Germany earmarks a record EUR 57 billion for green infrastructure, signaling a bold step toward a sustainable future. Berlin hopes to shore up the hydrogen industry with EUR 18.6 billion (USD 19.9 billion) as part of its plan to transition to renewables. Regarding transportation, the fund will provide some EUR 12.5 billion (USD 13.3 Billion) to Germany's rail network between 2024 and 2027.. Key drivers for this market are: Need for Reducing Environmental Impact of the Construction Sector, Support from Government Policies. Potential restraints include: Need for Reducing Environmental Impact of the Construction Sector, Support from Government Policies. Notable trends are: Increase in Non-residential Market.

In 2024, the average cost of building a new rental house in the Netherlands reached *** euros per cubic meter. Building owner-occupied property was slightly cheaper to construct, with an average cost of *** euros per cubic meter. The source mentions that the numbers concern an average on granted building permits for newly to be constructed homes with a total construction cost of more than 50,000 euros (excluding taxes over the last 12 months). Permits which combine living areas with holiday homes and/or offices were not counted. Note that no numbers were provided on renovation. What is the market size of the construction industry in the Netherlands? As of 2022, the Netherlands had over ******* active construction companies. These companies were either active in the construction of buildings or development of building projects, civil engineering or were involved in specialized construction activities. One of the more internationally well-known Dutch construction firms is BAM, which is also active in Belgium, the United Kingdom, Ireland and Germany with project deliveries in Denmark, Luxembourg and Switzerland. The revenue of the Royal BAM Group reached a value of *** billion euros in 2023. How much do you pay for a house in the Netherlands? Utrecht was one of the provinces in the Netherlands with the highest price for a single-family house. It is also important to look at the different prices in Dutch cities, as they can vary significantly. Residential property in Amsterdam, cities surrounding the Dutch capital (such as Haarlem) or Utrecht sold for much higher prices than a house in, for example, Rotterdam.

London leads the ranking of the most expensive region to build a parking garage in. Like two years previous, in 2018 London was still consecutively the most expensive area to build in. This was also true for other public building constructions in the UK and seems unsurprising given the city’s standing as a commercial and financial hub.

Below ground construction most expensive
As seen in this statistic, costs per square meter of internal area have increased in all areas across the UK, with the only exception being the UK North where it had become cheaper to build multistory car parks above ground. It was generally more expensive to do construction below ground than above. Limited space in English urban conurbations has seen residents more likely to park their car on streets than in garages.

London most expensive in Europe
The UK capital was continually ranked as the most expensive European city to build in. This was true not only for multi-unit high rise constructs, but also office facilities specifically. In both instances only New York proved to be more costly.

The cost of rent for office space in London is the highest in Europe. In the fourth quarter of 2023, the West End had average rents per square foot of *** British pounds. The average annual rent in London for prime office space was substantially higher than in any other European market. Prime yields For commercial real estate investors, prime yields in London averaged **** percent in 2023. As compared to the rest of the United Kingdom, yields for prime office space in London were notably lower. Commercial investments Office real estate, which comes under the broader term of commercial real estate, traditionally accounts for the lion's share of commercial real estate investments. In recent years, however, this share has been gradually declining. Despite this trend, the UK is one of the leading office real estate investment markets in Europe.

This Statistic shows the average cost of grade A and grade B office rents in the North of England (United Kingdom) per square foot in 2019. The North of England for this purpose includes the North West, Yorkshire and the Humber and the North East regions. In the North of England, prime rents for office space fluctuate depending on their location. In 2019, the cost of grade A office property was the most expensive in Manchester at 37.5 British pounds per square foot and 28.5 British pounds for grade B. The cheapest average office rents in the North of England could be found in Preston.

This Statistic shows the average cost of grade A and grade B office rents in Scotland (United Kingdom) per square foot in 2019. The most expensive area to rent Grade A office space in Scotland was seen in the capital, Edinburgh, with an average of 35 British pounds per square foot. Even Grade B property in Edinburgh was more expensive on average that prime real estate in Glasgow's out of town area.

The prime rent for large warehouses over 100,000 square feet in the UK was 11 British pounds per square foot in 2023. However, in London, the South East, and East, rents were twice higher. Conversely, the North East was the region with the most affordable warehouse rent, with the prime rent per square foot amounting to 7.75 British pounds. What is the rental price for warehouses in Europe? The UK has some of the most expensive warehouse rents in Europe. Other key markets that fetched high prices were Oslo, Helsinki, Dublin, and Munich, with rents ranging between 100 and 200 euros per square meter. In Eastern Europe, prices were notably lower, with markets such as Katowice, Warsaw, and Bucharest, reporting rents below 60 euros per square meter. How are warehouse rents expected to develop in the next years? The industrial and logistics real estate sector has grown dramatically since the COVID-19 pandemic. Although growth is forecast to slow, rents in the sector are expected to continue to increase until 2025. Industrial real estate is anticipated to outperform offices and retail not only by rental growth but also in terms of capital value increase.

This Statistic shows the average cost of grade A and grade B office rents in the Midlands in England (United Kingdom) per square foot. In the Midlands, prime rents for office space fluctuate depending on their location. In 2019, the cost of grade A office property in Birmingham was 34 British pounds per square foot and 23.5 British pounds for grade B. The cheapest average office rents in the Midlands could be found in Stafford and Telford.

The cost of rent in London is notoriously more expensive as compared to the rest of the United Kingdom (UK), with office rents being no different. In 2019, the cost of prime Grade A rent per square foot ranges from 120 British pounds in the West End to 23 British pounds in the Heathrow area.

Grade B property also fluctuated in costs, with a discrepancy 65.5 British pounds between the most expensive and cheapest areas for office space in London.

This Statistic shows the average cost of grade A and grade B office rents in Northern Ireland (United Kingdom) per square foot in 2019. The most expensive area to rent Grade A office space in Northern Ireland was seen in the capital, Belfast, with an average of 23 British pounds per square foot. This is almost 8 euros higher than the cost per square foot for grade A office property rent in Derry.

London West End - Bond Street is the most expensive location for prime high street rents in the UK, with prices reaching 2,250 British pounds per square foot. The West End was ranked ahead of the London City, which came in third. In Manchester, the annual costs of rental per square foot of prime retail real estate amounted to 225 British pounds. Retail warehouses Retail warehouses typically range from fifty thousand to hundreds of thousands of square feet. They are used for keeping and distributing inventory. Retail warehouses include loading docks, truck doors and large parking lots; also, they may contain a limited amount of office space. Prime retail warehouse properties belong to the wider category of industrial property, along with other real estate types, such as distribution buildings, showroom facilities, manufacturing buildings, cold storage facilities, telecom or data hosting centers, "flex" buildings denoting more than one industrial or commercial facility housed in the same building, and finally R&D buildings. Prime yields of high street retail across Europe Retail real estate prime yields in Europe were the lowest in Zurich, Switzerland, and the highest in Istanbul, Turkey in 2022. As could be expected, larger cities in Europe tended to produce lower yields, due to the lower risk associated with these markets. Locations with lower yields tend to have steady occupancy rates and rental growth.

The United Kingdom (UK) is the most expensive European country for annual costs of prime industrial rent. The annual rent for industrial space in London Heathrow in the first quarter of 2025 cost ***** euros per square meter. Switzerland, Norway, Ireland, Finland, and Luxembourg were the other European countries where the average annual cost of industrial prime rents in the capital city exceeded *********** euros per square meter.

London is the most expensive city for office real estate in Europe. In 2023, the per square foot cost of office space in London was higher than in any other European city. In West End, a Grade A office cost about 90 British pounds per square foot in 2023. Prime offices were even more expensive, at 135 British pounds per square meter. Office yields Prime yields in Central London fluctuate depending on the district, but West End areas tend to have lower yields compared to other areas, such as Stratford or Canary Wharf. The prime office yield in Mayfair/St. James' in 2023 was the lowest among the major London office submarkets. In real estate, yields measure the potential return of a rental property and are calculated as the ratio of the property's rental income to the investment cost. Typically, prime office yields in London are lower than the rest of the UK, which is mostly due to the highly competitive market and high investment costs. Vacancy rates Despite the high office rental costs in England’s capital city, vacancy rates in many of London's main office markets were below seven percent in 2023. This is good news for the office sector, as during the coronavirus (COVID-19) pandemic, the share of vacant office space across all Central London districts spiked dramatically. Compared to other European cities, London was in the middle of the ranking, alongside Frankfurt and Lisbon.

This Statistic shows the average cost of grade A and grade B office rents in the two largest cities in Wales (United Kingdom) per square foot in 2019. The most expensive area to rent Grade A office space in Wales was Cardiff, with an average of 25 British pounds per square foot. Even Grade B property was more expensive on average that prime real estate in Swansea.