In this article we cover:

  • Construction cost components
  • Material costs outlook
  • Labour costs outlook
  • Where to for 2026

Construction costs are, according to the Society of Chartered Surveyors Ireland, still creeping up, but at a much slower pace than a few years ago. According to its latest report, tender prices rose by 1.5 per cent in the second half of 2024 and by another 1.55 per cent in early 2025. That’s in line with the steady 1.5 per cent increases we’ve been seeing every six months since early 2023.

That’s a big change from the 6 to 7 per cent jumps that were hitting twice a year between 2020 and 2022.

However, when you zoom out, the numbers are still pretty eye watering. Since early 2020, overall tender prices (covering labour, materials and profit margins) have jumped by around 39 per cent.

So even if prices aren’t skyrocketing anymore, building today still costs significantly more than it did just five years ago.

Material costs mostly stable

Building material prices have mostly settled down. The latest data from the CSO (Central Statistics Office) shows small movements across the board; some up, some down.

A few materials did see noticeable increases over the past year:

  • Plaster products: up 6.4 per cent
  • Ready-mixed mortar and concrete: up 4.5 per cent
  • Copper pipes and fittings: up 5.5 per cent
  • Metal fittings: up 7.4 per cent

On the flip side, there were a few welcome drops:

  • Electrical fittings: down 3.4 per cent
  • Bricks and blocks: down 2.6 per cent
  • Reinforcing metals: down 2.8 per cent.

Timber, asphalt, and structural steel? Pretty much flat. Overall, material prices look like they’ve settled into a more predictable rhythm. Unless something unexpected hits the supply chain, this steadier trend could stick around in the short term.

Labour crunch

The bigger issue right now is labour. A new sector-wide pay agreement that took effect in August 2025 raised the hourly rate for a qualified craftsperson to €23. That’s set to rise again in August 2026 to €23.74.

But here’s the thing: with skilled workers in short supply, many contractors say they’re already paying well above those official rates just to keep good crews on site.

Keeping labour costs under control has become one of the biggest challenges for the industry. And with demand for workers showing no signs of slowing down, it’s likely to remain the key factor driving overall construction costs in the near future.

What’s next?

While we’re no longer seeing the runaway inflation of recent years, prices are still going up and there are no signs of deflation on the horizon. The current hope is for continued stability, but in a tight labour market, even small shifts can have a big impact. So, for now, the outlook is steady but still upward – especially if labour costs keep climbing