Dublin is now the fourth most expensive European city in which to build – after Zurich, Geneva and Munich.
Ireland’s capital also makes it into the top 25 most expensive places to build globally.
An International Construction Market Survey for 2024 also found inflation is second only to Warsaw.
Turner & Townsend Director Bryn Griffiths said there are a number of factors at play.
“Planning, [there’s] a high level of regulation and compliance, access to skilled labour, trying to secure a viable margin and also the increased cost we’ve seen in raw material over the past few years – [they’re] all impacting on project costs,” he said.
Expensive in global terms
Earlier this week, Dublin was ranked as the 41st most expensive city globally in Mercer’s Cost of Living City Ranking – up 10 places in a year.
The cost of housing was described as a “major factor” but Temple Bar Company CEO Martin Harte said the minimum wage also has an impact.
“Ireland has one of the highest minimum wages [of] just under €13 an hour,” he said.
“If you look at somewhere like Spain that’s about €8.80.
“At the same time I think post-COVID there has been a big increase in pricing.
“But that’s certainly stabilising – that’s something we’d see here in Dublin and in the city centre.
“Even the likes of hotel rooms prices have softened”.
With energy prices slowly falling, the overall cost of living in Ireland is expected to drop in the months ahead.
Main image: Construction cranes in Dublin. Photo: Sasko Lazarov/© RollingNews.ie
