press release

Turner & Townsend’s exclusive data sheds new light on skyscraper development across six key cities

A new report published today by the global professional services company Turner & Townsend provides a unique perspective on the market for tall buildings across six global cities.

The report draws on Turner & Townsend’s exclusive data to provide insights into the challenges and opportunities facing developers building skyscrapers in London, New York, Seoul, Tokyo, Mumbai and Dubai, including costs and the impact of designs and height on viability.*

One key finding from the report is that the shape of a skyscraper is as important as the height when it comes to the overall cost. In a city like London, there can be a 25% difference in price between the most ambitious and the most cost-efficient projects.  

With the number of tall buildings—those deemed over 200m in height—doubling to 2,583 globally since 2017, it is clear the economic case for building skywards has been won. The question now is how skylines across the world will change as high demand meets skills shortages, funding challenges, more stringent safety regulations and heightened geopolitical risks. 

Key conclusions from the report include: 

• The cost of building a new office building in London has increased by up to 40% since 2020. This upward trend is repeated across all six cities, if at varying degrees. 
• It is more than four times as expensive to build skyscrapers in London as it is in Dubai, and ten times as it is in Mumbai. 
• New York, alongside London, remains one of the most expensive places to build a tall building in the world. 
• Delivery risks are escalating construction price inflation in Seoul and in part explain the 30% increase in costs over the last five years. 
• With the number of skyscrapers in Mumbai tripling since 2020, the city’s tall building market is set for continued growth driven by intensifying urban densification, but will have to contend with tightening and developing regulations. 
• The cost of tower construction in Tokyo has increased by 50% since 2020, with super high-rise buildings seeing an even more pronounced rise in costs. 
• The cost of building a residential block in Dubai increased by 35% in the last five years, and while the appetite for luxury branded towers is strong, a hot market is prompting a different approach to procurement.  

The environment for tall building construction is more complex than ever—with high demand for state-of-the art products having to contend with skills shortages, funding challenges, more stringent regulations and heightened geopolitical risks.  

The industry is being asked to do more with less—making it essential to draw on global knowledge and leverage economies of scale to unlock viabilities and create successful neighborhoods. 

Turner & Townsend’s data reveals that while there are inherent cost premiums that come from increasing height, these can be minimized if the concept design is optimized.  

While height creates iconic landmarks, it also introduces challenges as this can lead to slenderness. This in turn results in greater wall-to-floor ratios and there are fewer contractors that can handle the complexities of this type of build.  

Taller buildings are also subject to additional planning constraints. However, the range of potential costs is significant and development teams that focus on key commercial drivers from the outset can achieve substantial savings while delivering buildings that are more efficient and easier to construct. 

Turner & Townsend is one of the industry leaders when it comes to providing project management, cost and commercial management and program advisory services and has helped deliver 200 tall buildings across the world, including the likes of 22 Bishopsgate, London; 30 Hudson Yards, New York; The Jewel, Australia; and Piramal Aranya in Mumbai. 

“Demand for tall buildings globally remains incredibly strong, with each location developing its tower products in different ways. Yet elevated construction costs, continuing inflation and risks, unfriendly financing conditions and softened yields have made viability the most pressing issue. Doing “more with less” is therefore the order of the day in major markets like London, New York and Tokyo.”

Steve Watts
Head of Tall Buildings
Turner & Townsend

Now more than ever, it is important to recognize the fundamental cost drivers at the start of a project so investment can be directed to areas of true value. This ensures tall buildings are integrated into the broader cityscape, whether that is by offering public amenities, a greater range of uses, a more welcoming connection to the streetscape, or increased permeability across the city. 

“In this context, wherever they are operating, it is critical for project teams to work together at the outset to address viability issues: to test briefs; apply greater focus at an earlier stage to both design strategies and detailing; to secure the help of key parts of the supply chain sooner; and to set up projects with clarity and alignment. When it comes to hitting budgets and delivering attractive, well-designed buildings that meet the needs of occupiers and communities, nothing is more important than starting on the right foot.” 

The full report is available to read here. 

*The Global Tall Buildings Report—defined as buildings with over 20 storeys

Cost ranges for constructing tall office and residential shell-and-core buildings 

*Cost data analysis was undertaken by Turner & Townsend during Q1 2026, with cost ranges derived from Turner & Townsend project data. The report was finalized before the recent events in the Middle East and does not reflect any potential impacts arising from them.