International construction market survey 2016

Around the globe
Netherlands – Amsterdam
Buoyant residential construction sector boosts economy
Economic overview
The Dutch economy remains reasonably strong with
low unemployment of 6.4 percent, low inflation and
reasonably solid growth of two percent during 2015.
Construction market and trends
The construction market, which rebounded with growth
of four percent in 2015, has become a key driver of the
national economy. Optimism is growing, largely fuelled
by higher prices being achieved in the residential market.
Profitability will take longer to recover as the contracting
community is yet to come back from the ‘lowest price’
war instigated during the financial crisis.
Foreign contractors and investors are being attracted
to the Dutch market as the increase in larger and more
complex private-public partnership projects continues,
already resulting in more aggressive bidding. Much of
this investment falls within the infrastructure sector, with
a focus on water-related projects. Central government
infrastructure spending also rose to EUR7.3bn in 2015.
Future outlook
Although the residential construction market is buoyant,
the pace of construction may fall back in the second half
of 2016. Prospects in non-residential are still modest,
with the key issue hampering new building being
increasing vacancy levels in existing real estate. In the
coming years, the need for newly built homes will rise,
posing a serious challenge in light of the heavy capacity
reductions seen over the past seven years.
International building costs per m 2 of internal area, in 2016
EUR
USD
(exchange
rate: 0.92)
Airports (building only)
Domestic terminal, full service 3,557 3,870
Low-cost carrier terminal, basic service 2,353 2,560
Car parks
Multi-storey above ground 581 630
Multi-storey below ground 1,130 1,230
Commercial
Offices – Business Park 1,636 1,780
CBD Offices – up to 20 floors medium (A-Grade) 2,227 2,420
CBD Offices – high-rise prestige 2,692 2,930
Education
Primary and secondary 1,523 1,660
University 1,974 2,150
Hospitals
Day centre (including basic surgeries) 2,322 2,520
Regional hospital 2,639 2,870
General hospital (e.g. city teaching hospital) 3,166 3,440
Hotels
3 Star travellers 1,868 2,030
5 Star luxury 3,300 3,590
Resort style 2,459 2,670
Industrial
Warehouse/factory units – basic 804 870
Large warehouse distribution centre 908 990
High-tech factory/laboratory 1,770 1,920
Residential
Individual detached or terrace style house – medium standard 1,214 1,320
Individual detached house – prestige 1,531 1,660
Townhouses – medium standard 1,214 1,320
Apartments low-rise – medium standard 1,403 1,530
Apartments high-rise 1,995 2,170
Aged care/affordable units 1,689 1,840
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Turner & Townsend