Overview

The Irish Construction Industry is demonstrating resilience in 2025 despite facing key challenges, including skilled labour shortages across trades and professional services, ongoing material cost pressures, and infrastructure bottlenecks affecting project delivery. Planning delays and regulatory complexity continue to impact timelines.

Much like last year, the residential sector and the cost-of-living crisis dominates most of the discussion pieces in the media. The industry is projected to deliver approximately 33,000-35,000 homes in 2025, falling short of the government’s target of 41,000.

The industry is increasingly embracing modern construction methods, including modular and prefabricated solutions, to improve efficiency and meet sustainability targets. With major investments planned in housing, transport, energy, and social infrastructure, the sector remains fundamental to Ireland’s economic development and future growth. Construction output is estimated to grow by 5-6% in 2025, which represents a significant increase from 2024’s modest growth.

How our industry grows over the next few years will depend on several key challenges such as a skills/labour shortage, material costs rising, overcoming red tape/legal challenges to developments and our integration of more sustainable construction and energy efficient methods for our building stock.

SCSI Tender Price Index

The latest SCSI Tender price index was issued in August 2025, and this shows that the national annual rate of construction inflation has eased considerably over the past two years. Tender price inflation is running at approximately 3.0% per annum over the past two years, down from 3.9% in 2023 and the hugely significant increase of 11.5% in 2022.

Global influences are always a factor on tender prices such as ongoing geopolitical uncertainty and conflict in various regions and the potential for reciprocal tariffs on the US from the European Union. Domestically, issues which can impact price increases will be the introduction of Government levies on construction and demolition waste disposal (as of September 1, 2024); labour costs; and high fuel costs

BMP

Against this dynamic backdrop, BMP are delighted to be striding into their 58th year of business in 2026 where we continue to retain experienced staff and are still recruiting young candidates to ensure that we fulfil the high standards of performance that we set ourselves. The Irish marketplace is relatively small, and it is massively important to us that we build on existing relationships with Design Teams and Clients.

Over the past 12 months we have continued our long line of delivering healthcare projects with the completion of the new Surgical Hub in Mount Carmel Hospital and phased upgrades to the Cardiac Catheterisation Laboratory and Burns Unit in St. James’s Hospital and the new Vhi 360 Health Centre in Galway.
We are delighted to maintain our relationship with Altere Developments and we will be cutting ground in two new nursing home developments in the new year in Crumlin and Kilcoole.

We also continue to excel in Conservation & Restoration projects for a wide array of Clients from Courthouses in Portumna, Market Quarters in Thurles and magnificent properties on Parnell Square. We are looking forward to getting to site in 2026 with the refurbishment works to St. Mary’s Cathedral on Marlborough Street on behalf of the Dublin Diocese. These projects take extra special care as a Quantity Surveyor but are extremely satisfying when you see the finished product.

We have carried out reinstatement valuations for numerous health, agricultural & educational campuses recently which builds on our huge experience in this area. We also continue to value ecclesiastical properties the length and breadth of the 32 counties.

We are delighted to continue to work with some of the leading main contractors in Ireland and assist them on many varied projects from data centres to office blocks and multi storey residential projects.

We hope that as a company we keep rising to all these challenges in the next 12 months.

Damien Morgan MSCSI MRICS
Director
Brendan Merry & Partners
December 2025