Monday, 8 July 2025 – Dublin
Dublin has been ranked the fourth most expensive city to build in Europe, with average construction costs now reaching €3,692 per m² (US$3,994), according to the latest Global Construction Market Intelligence (GCMI) 2025 report published by Turner & Townsend. This places Ireland’s capital behind Zurich, Geneva and London, but ahead of other major European hubs like Munich and Frankfurt.
The report attributes Dublin’s rise in the rankings to a sustained pipeline of commercial and data centre investment, as well as mounting pressure from the Irish Government’s pledge to deliver more than 300,000 new homes by 2030. However, the report also flags growing risks that could hinder delivery—including skills shortages, digital adoption gaps and regulatory hurdles.
“While Ireland’s construction market shows resilience and sustained demand, particularly in high-tech and residential sectors, cost pressures and structural challenges threaten to limit capacity just when it’s most needed,” said Philip Matthews, Managing Director at Turner & Townsend Ireland.
Key Irish Highlights from the Report:
- Construction Costs Rising: Dublin now averages €3,692 per m², nearing London’s €4,977 per m².
- Data Centre Growth: A major contributor to rising demand, especially as AI adoption drives European digital infrastructure needs.
- Cost Inflation Easing, But Elevated: Regional inflation is forecast to decline from 2.9% in 2024 to 2.4% in 2025, offering short-term stability.
- Labour Shortages Critical: 100% of European markets report insufficient MEP (mechanical, electrical, plumbing) labour availability—affecting Irish capacity.
- Low BIM Adoption in Ireland: Less than half of Irish clients are currently pursuing digital transformation or Building Information Modelling (BIM), compared with over 50% in cities like Zurich, Geneva and Copenhagen.
- Red Tape Remains a Barrier: 62.5% of European respondents cite bureaucracy and delayed approvals as a large or major constraint—mirrored in the Irish context.
Despite these challenges, the report highlights balanced market conditions in Ireland, with competitive tendering activity indicating continued investor confidence.
“Ireland’s challenge now is to build smarter, not just more. Targeted upskilling, streamlined planning, and faster adoption of digital tools like BIM are essential if we are to match ambition with delivery,” added Philip Matthews, Managing Director at Turner & Townsend Ireland.
