National annual rate of commercial construction inflation is now running at 3% – down from 3.9% reported for 2023
Chartered Surveyors say State should take advantage of more stable price environment to accelerate investment in public infrastructure
Thursday 6th February 2025: A new report by the Society of Chartered Surveyors Ireland (SCSI) shows that while commercial construction costs are continuing to rise, the rate of increase has remained relatively stable over the last 18 months.
The latest Tender Price Index (TPI) published by the SCSI shows the rate of commercial construction inflation increased nationally by 1.5% in the second half of 2024, the same rate as the two preceding six-month periods.
According to the SCSI’s Tender Price Index, (TPI) which is the only independent assessment of commercial construction tender prices in Ireland, the annual median national rate of inflation for 2024 was 3%, down from the 3.9% recorded for 2023 and the 11.5% recorded for 2022.
The report indicates some variation across the regions over the last six months with the highest median rate of inflation of 2% recorded in Connacht / Ulster, in Munster the figure was 1.5% while in Leinster and Dublin the increase was 1%.
That 1% figure was also Dublin’s annual median Tender Price change as it recorded 0% price change in the first half of 2024. Munster has the highest annual increase at 4%, with Connacht / Ulster on 3.5% and Leinster (Excl Dublin) on 2.5%.
Fig 1. Construction Tender Prices 1998 – 2024 Research for the latest edition of this sentiment survey, which is based on responses from Chartered Quantity Surveyors from all around the country, working on commercial projects, was conducted in January 2025.
The President of the SCSI, Kevin Hollingsworth said that following significant turbulence in the market over the last few years, price inflation has returned to a steadier pattern.
“These figures illustrate the dramatic changes we have experienced with commercial construction inflation over the last three years. In the first six months of 2022 inflation reached a record high of 7.5%, while the annual rate of inflation that year was 11.5%. The respective figures now are 1.5% and 3%, which is a welcome improvement.
“The reduction in the rate of increase is due in the main to the continuing competitive commercial construction market and reduced-price volatility for construction materials. Surveyors indicated that they anticipate tender prices, labour and materials will continue to increase in the first half of 2025 but due to the global volatility and the open nature of the economy they said it was very difficult to predict if the more moderate rates we have seen over the last year and a half would continue.”
“Many members also raised concerns over the introduction of tariffs on goods and services to the US, in terms of the potential impact it may have on the wider economy and in turn on capital investment.”
Mr Hollingsworth said the State should take advantage of the more stable tender price environment.
“In terms of the formation of a new government and the Programme for Government, the return to more sustainable levels of inflation presents an opportunity to accelerate the much-needed investment in public infrastructure in areas such as utilities, transportation and healthcare.”
For media queries please call the SCSI at (01) 6445500 and ask for Patrick King.
Note to Editor
Methodology and Use of Data Notes
The data outlined within this report was provided by SCSI Chartered Quantity Surveyors with direct expertise and knowledge on the market conditions in the construction sectors across the country. The statistics extracted from our member survey were utilised in outlining the findings of this report, which is intended to give a general overview of median commercial tender price trends within Ireland’s construction sector.
The Index is the only independent assessment of construction tender prices in Ireland. It is compiled by Chartered Quantity Surveying members of the SCSI. The Tender Price Index (TPI) 2H 2024 is based on sentiment returns only. The TPI is for commercial projects during the period in question. It is based predominately on new build projects with values in excess of € 0.5m and covers all regions of Ireland. The Index relates to median** price increases across differing project types and locations. It should be regarded as a guide only when looking at any specific project, as the pricing of individual projects will vary depending on such factors as their complexity, location, and timescales.
**From 1H 2021 onwards, the median value is used as the statistical methodology.
