Commercial construction costs are rising at the lowest rate in five years, according to a new report from the Society of Chartered Surveyors Ireland (SCSI).
The SCSI's latest Tender Price Index 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 of the year.
The SCSI's Tender Price Index (TPI) shows the annual median rate of inflation for last year was 2.5% nationally, the lowest TPI increase recorded since 2020 when it was 2.2%.
The SCSI said the relative stability of the index over the last three years is also reflected in modest variations across the regions over the last six months.
It noted that the highest median rate of inflation of 1.8% was recorded in Connacht/Ulster, while in Munster the figure was 1.5% and in Leinster and Dublin tender prices were static at 0% inflation.
Connacht/Ulster also had the highest annual increase at 3.8%, with Munster on 3.5%, Dublin on 1% and Leinster (excluding Dublin) on 0.5%.
The 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," he said.
"This presents opportunities for Government investment in a strong market and active labour force," he added.
But he cautioned that geopolitical uncertainty is 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," Mr Kelly said.
Today's survey also reveals that almost six out of ten respondents believe that the current market is in mid-upswing or at peak in material prices, while two out of ten believe the market is currently operating in an early downswing or at the bottom of the cycle.
It also shows that 69% of surveyors anticipate tender prices will increase for the first half of 2026, with 25% anticipating prices staying the same and 6% anticipating a decrease.
