Posted on September 21, 2026
By Crystal Szeto
Arcadis (EURONEXT: ARCAD), the world’s leading company delivering data-driven sustainable design, engineering and consultancy solutions for natural and built assets, welcomes the Chief Executive’s 2026 Policy Address, recognising it as a transformative blueprint that will shape the next phase of Hong Kong’s development and strengthen the city’s position as a global hub for innovation, infrastructure and sustainable growth.
The Policy Address outlines ambitious measures to advance the Northern Metropolis, accelerate major infrastructure projects, expand the adoption of artificial intelligence (AI), and modernise city governance. Together, these initiatives signal a significant opportunity for Hong Kong’s built environment sector to drive productivity, enhance resilience and deliver long-term value for communities and businesses.
Key announcements include the commencement of all nine New Development Areas within the Northern Metropolis, five major works projects, the establishment of an “AI City Brain” integrated city management system, the replacement or rehabilitation of 350 kilometres of aged water mains over the next five years, accelerated planning and approval processes, and wider adoption of AI across public services and construction-related activities. Beyond infrastructure, the property and real estate sector is set for a new cycle of activity. With ~2,500 hectares of “spade-ready” land planned over the next decade (~1,000 ha in the Northern Metropolis), a comprehensive Urban Renewal Authority policy review, the scaling-up of the “District Development” model, the release of urban industrial land for revitalisation, and major commercial renewal at Wan Chai North and Central, developers and investors have a rich pipeline ahead — complemented by REIT facilitation and a growing student-accommodation asset class.
Equally important is how these projects will be delivered. The Government’s drive to compress EIA timelines (from up to 48 months to as few as 15), embrace framework procurement and contractor early involvement, and scale up MiC, MiMEP, BIM and AI marks a genuine shift toward faster, smarter, lower-carbon delivery.
William Fong, Head of Cost and Commercial Management, Hong Kong and Macau at Arcadis said, “The 2026 Policy Address demonstrates a clear commitment to building a smarter, more sustainable and future-ready Hong Kong. The focus on accelerating the Northern Metropolis, modernising critical infrastructure and embracing AI-enabled transformation creates a strong foundation for economic growth and enhanced liveability.”
“As project pipelines expand and delivery timelines become increasingly ambitious, success will depend on improving productivity, managing costs and unlocking innovation across the construction value chain. Digital solutions such as Building Information Modelling (BIM), Artificial Intelligence, High Productivity Construction Method will be essential in helping the industry achieve these objectives.”
Arcadis believes that delivering these ambitions will require a strong focus on integrated planning, programme management, digital delivery and cost certainty. The firm’s global experience in major urban regeneration, infrastructure and smart city projects positions it to support public and private sector clients in navigating increasingly complex delivery environments.
William Fong added, “The future of construction lies in combining human expertise with data, digital platforms and intelligent automation. By embracing technologies such as AI, BIM, digital twins, MiC and MiMEP, Hong Kong has an opportunity to improve project outcomes, address labour challenges and create a more sustainable built environment.”
Arcadis also notes that the Policy Address comes at a time when construction cost pressures remain a key consideration for clients and project owners. Insights from Arcadis’ International Construction Costs Index highlight the importance of early planning, robust commercial management, efficient procurement and technology-led productivity improvements in maintaining project viability amid evolving market conditions.
As Hong Kong embarks on this new phase of development, Arcadis stands ready to support government agencies, developers, infrastructure owners and industry partners in delivering projects that are sustainable, resilient and economically viable.
