Tower plans squeezed as London build costs spiral | Construction Enquirer News
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40% hike in London tower costs over five years triggers viability crunch
A new report from Turner & Townsend warns that viability has become the single biggest barrier to delivering tall buildings in the capital, with rising costs now colliding with weaker yields and tougher funding conditions. The consultant found London has seen one of the steepest cost increases of any global city, making it more than three times as expensive to build a tower as Seoul. London vs global skyscraper build costs (2025/26) Sector London New York Tokyo Seoul Dubai Office shell & core (£/m² GIA) £5,450–£6,870 £5,530–£7,660 £5,770–£6,640 £1,660–£1,980 £1,190–£1,420 Residential shell & core (£/m² GIA) £3,870–£4,500 £4,660–£6,160 – £1,420–£1,740 £1,110–£1,380 The viability gap is now feeding directly into development decisions, with schemes increasingly being reworked, delayed or quietly shelved as investors reassess risk. The report said that more positively, demand for quality, sustainable space remains strong, and confidence is beginning to return, with some large investors using their ability to take a longer-term view to get their towers into a favourable letting market. But it warns that the era of eye-catching landmark building designs is over. The cost spike since 2020 has been driven by a mix of global inflation linked to geopolitical disruption, tighter regulation, higher specification demands and ongoing post-Brexit trading pressures. Turner & Townsend said developers are being forced into a “do more with less” approach, stripping back inefficiencies and pu...
