Construction market overview
Our Q1 2024 Republic of Ireland market intelligence report is the first of two bi-annual reports where we engage the regional construction supply chain to get a clear picture of market dynamics that impact construction price and cost movements across the Republic of Ireland.
The responses received from Ireland-based contractors in Q1 2024 indicate that, on balance, contractors believe the construction market is weakening, with 48.1 percent of respondents indicating the market is ‘staying the same’ and 40.7 percent suggesting that it is ‘cooling’, while 11.1 percent perceive a ‘warming’ in the market.
Source: Turner & Townsend survey
The Irish construction industry in Q1 2024 is showing resilience despite the challenging landscape of skilled labour shortages, rising costs, and uncertainties in project timelines and contracts. Analysis of the contractors’ response reveals housing to be the top-performing sector, with public housing performing most strongly. Major projects in the region include Land Development Agency residential schemes, data centres and key MedTech projects.
Source: Turner & Townsend survey
While construction costs rose in 2023, the rate of increase eased significantly in the second half of the year. The latest Tender Price Index (TPI) for Ireland, published in February 2024, showed commercial construction tender prices increased by 1.5 percent in the second half of 2023, down from 2.4 percent in the previous six months. This compares with the perceptions and expectations of contractors on the ground, who expect tender price inflation of 5.3, 3.6, 3.1 and 3.1 percent in 2023, 2024, 2025 and 2026, respectively.
© 2024 Turner & Townsend