Market conditions and sentiment
The construction market in Ireland presents a somewhat nuanced picture in early 2025, with stability being the predominant theme. While nearly three-quarters of contractors report conditions as unchanged (Figure 4), there is an undercurrent of caution, with almost one in five perceiving a cooling market. Only a small minority (9.0 percent) see warming conditions, suggesting limited optimism for rapid growth in the immediate future.
Source: Turner & Townsend survey
The tendering environment reflects this cautious stability, with 48.0 percent of respondents describing conditions as ‘warm’ (moderate competition, moderate tender prices) and 43.0 percent as ‘lukewarm’ (strong competition, moderate tender prices). Just 10.0 percent characterise the market as ‘hot’ with easy-to-secure work and higher prices. None of the respondents indicated either ‘overheating’ or ‘cold’ market conditions, further reinforcing the picture of a balanced, if somewhat subdued, environment.
Source: Turner & Townsend survey
The political context adds another layer of complexity, as Ireland's new government approaches its 100-day milestone. Market participants note that the governmental transition has slowed commitment from Approved Housing Bodies (AHBs) in progressing high-density residential projects. While most view this as a temporary situation related to the election cycle rather than a fundamental shift, it nonetheless impacts the short-term residential pipeline.
