Key Findings:
- Construction tender prices increased by just 1% in the second half of 2025
- This means tender prices for 2025 increased by 2.5% – down from 3% in 2024
- The current rate of increase is the lowest recorded since 2020
- Chartered Surveyors say moderate rate of increases are further evidence of a general stabilisation or return to ‘business as usual’
Tuesday 17th February 2026: A new report by the Society of Chartered Surveyors Ireland (SCSI) shows that commercial construction costs are now rising at the lowest rate in five years.
The latest Tender Price Index (TPI) published by the SCSI shows the rate of commercial construction inflation increased nationally by 1% in the second half of 2025, down from 1.5% in the first six months.
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 rate of inflation for 2025 was 2.5% nationally, the lowest TPI increase recorded since 2020 when it was 2.2%.
The relative stability of the TPI index over the last three years is also reflected in modest variations across the regions over the last six months with the highest median rate of inflation of 1.8% recorded in Connacht / Ulster, in Munster the figure was 1.5% while in Leinster and Dublin tender prices were static, 0% inflation.
Connacht / Ulster also had the highest annual increase at 3.8%, with Munster on 3.5%, Dublin on 1% and Leinster (Excl. Dublin) on 0.5%. As can be seen from the survey of tender price changes above, regional variations can occur. The SCSI says this can be for a combination of reasons, from differing activity levels to availability of resources and/or a time lag in other factors.
Fig 1. Construction Tender Prices 1998 – 2025
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 2026.
Vice President of the SCSI, Tomás Kelly said the ongoing price stability was positive for the construction sector.
“The outlook of chartered quantity surveyors is that tender prices will continue on their current stable trajectory and that after a number of years of disruption caused by covid and the Ukraine war, the last three years has seen a stabilisation and a return to ‘business as usual’. This presents opportunities for Government investment in a strong market and active labour force.”
“Of course, geopolitical uncertainty has been highlighted as an area which need to be monitored as it has the potential to cause a slowdown in foreign direct investment, especially from US investors. Notwithstanding this, the outlook is positive for activity levels given the strong capital programme.”
“These figures illustrate the dramatic changes we have experienced with commercial construction inflation over the last four 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% and 2.5%, which is most welcome.
“According to our survey, almost 6 out of 10 respondents believe that the current market is in mid-upswing or at peak in material prices, while 2 out of 10 believe the market is currently operating in an early downswing or at the bottom of the cycle. Among surveyors 69% anticipate tender prices will increase for the first half of 2026, with 25% anticipating prices staying the same and 6% anticipating a decrease.”