Market forecast: Construction costs stabilise despite Middle East conflict pressures

By Pablo Cristi Worm 2026-09-09T06:00:00

Construction output is slowing, and the economy is fragile. But with tender prices stable, conditions look better for starting projects now than the headline economic figures suggest

01 / Summary

Tender price index ▲

Aecom’s tender price index is expected to increase by 3.6% in 2026, then slow to 3.5% in 2027, assuming limited second-round effects from the Middle East conflict.

Building cost index ▲

Aecom’s building cost index increased by 3.4% in Q2 2026, revised downward as the risk of ongoing inflationary pressures has eased.

Construction insolvencies ▼

Construction insolvencies decreased by 7.8% in the three months to July 2026, compared with the previous three months, and decreased by 6.9% compared with the same period last year.

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