JLL's Global Construction Costs Index 2026 report says annual construction cost growth of 3%–6% has become a new permanent baseline, well above the 2%–3% pre-2020 norm, after a 25%–30% surge since 2021. JLL forecasts global tender prices to rise a further 3.1%–4.2% in 2027. Construction wages rose 8%–35% across key markets between 2020 and 2026, as demand from data centers and advanced manufacturing competes for skilled workers. Industrial and data center assets are absorbing higher costs better thanks to strong value growth, while office and retail face a more complex return calculation. The report says developers should not wait for costs to return to earlier levels and should re-test project viability continuously.
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Original headline: Factories and data centers are competing for the same skilled trades · EMSNow
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