There are concerns in the construction industry over the rising costs of oil as the US-Israeli war with Iran continues.
Speaking on RTÉ's Morning Ireland, the CEO of the Construction Industry Federation said that fears are mounting over prolonged shipping disruptions.
"We are a small island economy, so a big component of all our material costs are transportation and logistics," Andrew Brownlee said, adding that energy price shocks like the one observed in the past week have a "major impact" on the costs across the construction industry.
"When you think about construction concrete, cement, steel, and you think about how those materials are made, they really are dependent on fuel, and fuel is the core driver of costs."
According to a cost comparison done by Government in 2023, construction costs in Dublin are higher in comparable cities across Europe, like Copenhagen, Birmingham and Berlin.
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Whether the rising cost of oil could impact smaller scale projects, their cost and the supply of material, Mr Brownlee said "it's too early to tell."
He said he hopes for a resolution to the conflict and the end of the economic uncertainty driven by it.
In the scenario of a prolonged crisis, the CIF would hope for Government support to the industry, the group's chief added.
In the last budget, the State reduced the VAT rate on the sale of completed apartments to 9% from 13.5%.
It will remain at that level until the end of 2030.
