Construction tender prices increased by just 1pc in the final six months of last year. It meant the rate of inflation for the whole of 2025 was 2.5pc, slightly down on the 3pc recorded in 2024.
The SCSI says the rate of increase was the lowest since 2020, and is a sign of a return to “business as usual” following the disruption caused by Covid, and the energy price spike of 2022.
The tender price index, set up in 1998, tracks the level of competitiveness in the delivery of commercial construction projects such as office, retail and industrial units.
The sentiment survey is based on responses from chartered quantity surveyors working on commercial projects around the country.
The highest median rate of inflation, of 1.8pc, was recorded in Connacht/Ulster. In Munster, the figure was 1.5pc, while in Leinster and Dublin, tender prices were static, at 0pc.
The SCSI says regional variations can arise for a number of reasons, including different levels of activity, delays in delivery and availability of resources.
Tomás Kelly, vice-president of the SCSI, said price stability was positive for the construction sector.
“The outlook of chartered quantity surveyors is that tender prices will continue on their current stable trajectory, and that after a number of years of disruption caused by Covid and the Ukraine war, the last three years has seen a stabilisation and a return to ‘business as usual’,” he said. “This presents opportunities for government investment in a strong market and active labour force.”
Mr Kelly warned that geopolitical uncertainty still needs to be monitored, but the outlook for activity levels is positive given the strong capital programme the Government envisages.
“These figures illustrate the dramatic changes we have experienced with commercial construction inflation over the last four years. In the first six months of 2022, inflation reached a record high of 7.5pc, while the annual rate of inflation that year was 11.5pc,” he said.
“The respective figures now are 1pc and 2.5pc, which is most welcome.”
Six out of 10 respondents believe the current market is in mid-upswing or at peak in material prices, while one in five think it is in an early downswing or at the bottom of the cycle.
Among surveyors, 69pc expect tender prices will rise in the first six months of this year, 25pc think prices will stay the same and 6pc predict a decrease.
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