Nairobi has emerged among the top five cheapest cities to build internationally per a new report by Turner & Townsend, a global consultancy business.
The survey which covered the first quarter of 2024 indicates that the average cost of building in Nairobi is at Ksh100,000 (USD784.9) per square meter which was lower than the most expensive city globally.
In Africa, the most expensive cities to the cheapest were Harare in Zimbabwe, Lagos in Nigeria, Kigali in Rwanda, Cape Town in South Africa, and Kampala. Gaborone in Botswana, and Johannesburg in South Africa.
"Dislocated supply chains, along with a persistent stop-start cycle of financing, delayed approvals, and bureaucratic complexities, continue to challenge construction programmes. One consequence has been an increase in programme lengths – with delays commonly stretching to over five weeks in Nairobi, Lagos, Cape Town and Harare," reads part of the report.
Per the report, costs per squared meter in Harare was at USD1,992.7, in Lagos, it was at USD1,539.8, USD1,131 in Rwanda, USD1,088.3 in Kampala, USD1,034.4 in Gaborone, and in Johannesburg it was at USD988.4.
Some factors affecting construction in Africa include economic instability, government red tape or delayed approvals, rising cost of construction, increasing contractor insolvency, difficulties accessing credit, political instabilities and skilled labour shortages.
The report outlines that the cost of offices in the Central Business District (CBD) in Nairobi can cost an average of Ksh132,000 for a highrise prestige and Ksh94,500 for up to 20-floor medium offices.
Additionally, the report outlines it costs Ksh115,500 in Nairobi for an advanced manufacturing facility and Ksh70,000 for a large warehouse distribution centre. It also costs Ksh70,000 for a high-rise apartment and Ksh60,000 for townhouses medium standard in Nairobi.
On matters of labour, material and plant costs, the report detailed that a plumber, electrician, tiler and bricklayer earns Ksh250 a day, the green collar installation operative gets Ksh300 a day, a labourer is paid Ksh100 and a site foreman earns Ksh375 daily.
"A global rise in labour costs, brought on by persistent labour shortages, is exerting upward pressure on overall construction expenses," the report reads in parts.
According to the report it costs Ksh100,000 to hire a 50-tonne mobile crane and operator for a day. A spot check on the prices reveals that they vary from Ksh8,000 per hour depending on the machine or vehicle.
Meanwhile, New York in the United States was the most expensive city to build in costing an average of USD5,723. In second position globally was San Francisco also in the US where building costs an average of USD5,489 and Zurich in Switzerland was in third position with an average cost of USD5035.4.
"As clients look to decarbonise their assets, and as states put legislation in place to encourage greater carbon efficiency, competition for green collar skills – and the associated costs – will continue to rise," read part of the report.
