JLL forecasts global construction tender prices to rise 3.1%-4.2% in 2027
JLL•JLL forecasts global construction tender prices will rise 3.1% to 4.2% in 2027. Its 2026 index identifies a 3% to 6% annual cost-growth baseline, compared with 2% to 3% before 2020.
1. Higher cost baseline
JLL's Global Construction Costs Index 2026 identifies a permanently higher annual construction cost-growth baseline of 3% to 6%, compared with 2% to 3% before 2020. Global tender prices are forecast to rise 3.1% to 4.2% in 2027, further tightening development feasibility.
2. Labor and sector differences
Construction wages rose 8% to 35% across key markets from 2020 to 2026, reflecting structural shortages of skilled labor. Industrial logistics and data centers are absorbing higher costs through stronger value growth, while office and retail face tighter investment returns.
3. Developer considerations
JLL says developers should continuously reassess project viability, secure long-lead materials early and favor retrofits where they outperform new construction.
