Republic of Ireland market intelligence: market stability amid ongoing challenges
Ireland’s construction industry continues to show signs of stability, reported in our autumn survey, 78 percent of respondents said that market is ‘staying the same’. Eleven percent of respondents perceive the market to be ‘cooling’, while another 11 percent believe the market is ‘warming’. Although there is overwhelming demand across sectors including housing and infrastructure, the industry is only operating at 77 percent capacity.
Housing emerges as top-performing sector
Housing remains the top performing sector, with private sector delivery now outpacing the public sector - a shift that may impact affordable housing supply in the marketplace. This robust activity in the residential sector is likely bolstered by strong demand and ongoing cross-party government support, which was reinforced in Ireland’s Budget 2025.
Improvements in sustainability
The Irish construction industry is showing increasing commitment to sustainability and net-zero goals, albeit with considerable room for improvement.
According to our survey, 50 percent of respondents indicated that only 0-25 percent of their projects have a significant commitment towards reaching net-zero carbon. Similarly, 50 percent of respondents said that only 0-25 percent of their projects conduct an embodied carbon assessment.
Skilled labour shortages continue
Despite strong sentiments of market stability, the industry remains influenced by significant disruptions over the past four years. Recent events have triggered a significant exodus of skilled labour from the Irish construction sector. Cost of construction labour is also seeing quarterly increases at five percent.
Addressing labour shortages, streamlining processes, embracing sustainability and adapting to market shifts will be critical for the industry over the coming years.
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