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7 Reasons Why New York City Has The Highest Construction Cost In The World

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7 Reasons Why New York City Has the Highest Construction Costs in the World
New York City is an highly developed city in the world. It is a business and educational center that attract millions of people within the USA and around the world. Most of the development companies are worried because of the increased construction cost. It has been found over the last few years the construction cost has been rapidly increasing. Here are some of the reasons why it is uncontrollable.
Overstaffing
A common mistake most of the MEP engineering companies make is overstaffing. It has been found that more of the companies will hire more staff to complete the construction project in limited time. The project might be completed in limited time but they have to pay a decent …show more content…

This is the reason why space required for construction projects are limited. It has increased the rates of the real estate property. Most of the property owners has 3 to 4 times more price as compared to market rate because they know the increasing demand for their property.
Competitive environment
We all know that with the competitive environment the rate of products decreases but in New York City everything is going in the wrong direction.
1. Most of the individuals are ready to pay anything the owner asks for
2. In order to be better than rivals, some construction companies are ready to pay anything for a piece of land
3. With the increase in demand for land, the cost of construction is increasing.
Political pressure
One of the biggest issue why the rate of construction in New York City is increasing is because of the political pressure. There are many rules and regulation that companies have to follow and in order to meet the legal requirements, they have to pay a lot of money that eventually increase the cost.
Higher property

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