Hong Kong is the most expensive country to build in followed by Switzerland, Denmark, Sweden and Macau.
A report published by consultants EC Harris found that construction costs many parts of the world have fallen over the last 12 months, helped by a combination of the weak pound and inflation in some European markets.
The annual study found the cheapest locations to build are India, Indonesia and Vietnam.
Simon Rawlinson, head of research at EC Harris, said: “Currency fluctuations have had a substantial effect on relative construction costs over the past year, particularly the fall of the Yen and the appreciation of the Chinese Yuan – this not only makes Chinese imported materials to other countries more expensive, but has also contributed to China moving nearly half way up the global rankings.
No Middle Eastern countries were featured among the top 10 expensive places for new work.