Market Update September 2026

Construction costs in Ireland are rising faster again. Here’s how that affects decisions about the buildings you own, buy and manage.

Buildcost’s latest Construction Cost Guide confirms that construction costs in Ireland are rising faster again. Commercial tender prices rose 3% in the first half of 2026. That is the sharpest six-month increase since late 2022, and it brings annual inflation to around 4%. The main causes are skilled labour shortages, the Sectoral Employment Order wage increases that took effect in August, and higher material prices. Over the past year, copper, pipework and PVC have risen by between 5% and 9%.

For the building owners, asset managers, funds and occupiers we advise, the headline figure matters less than how it affects decisions about their buildings.

“Cost inflation is back, and it affects every decision about a building, from acquisition and capex planning to lease-end dilapidations. Our advice to clients is simple: know your building, plan early and price realistically. In a market like this, good information is the best protection against unwelcome surprises.”

Sean Mooney, Director, BLDG

What it means for our clients

Due diligence

Rising costs make condition surveys more important. A defect that was a manageable repair two years ago may now cost significantly more to fix. Capital expenditure forecasts built on 2024 rates are already out of date. Buyers and funders need future repair and replacement costs to reflect current pricing.

Retrofit

The guide makes a clear case for upgrading existing buildings rather than redeveloping them. Taking an office to an A-rated BER costs roughly €1,600–2,800 per m². Buildcost’s deep retrofit research found this can be done for about a third of the cost of redevelopment, and the building gets back to earning rent years sooner. With only 3% of Irish offices currently A-rated, we expect retrofit to be the defining opportunity for many owners over the next few years. Getting the scope, sequencing and budget right from the start is where a building surveyor adds real value.

Dilapidations and reinstatement

Higher trade rates flow straight into dilapidations claims at lease end and into reinstatement values for insurance. Landlords and tenants should both check that their figures still reflect the market. Owners of protected structures should pay particular attention: refurbishment of Georgian buildings now ranges from €4,000 to €6,000 per m².

Key figures

• Office Cat A fit-out: €800–1,100 per m²
• Office Cat B fit-out: €2,200–3,000 per m²
• Georgian refurbishment: €4,000–6,000 per m²
• 84% of Chartered QSs say the market is rising or at its peak

Download the guide

Buildcost Construction Cost Guide, Second Half 2026

Buildcost’s twice-yearly guide sets out current tender price trends and indicative cost ranges across offices, retrofit, residential, education, health, hotels and more.

 

Figures are taken from the Buildcost Construction Cost Guide, Second Half 2026, and the SCSI Tender Price Index. Cost ranges are indicative only and exclude VAT, professional fees, site works and abnormal costs. This article is for general information and does not constitute professional advice on any specific property.