Ireland construction trends: Industry report
2024 has been a challenging year for Ireland’s construction sector due to the shortage of skilled labour, rising costs and uncertainties in project timelines and contracts. The cost of labour and raw materials remain the catalyst for growing pressure across all construction sub sectors as many contractors battle year-on-year increases to pricing, which is squeezing profit margins.
Overall, construction activity has been flat, influenced by a decline in the commercial sector as a result of the rising number of vacant offices. However, Ireland’s unprecedented demand for new homes, driven by population growth and urbanisation, should galvanise opportunities in the residential sector to fulfil the government’s ambition to deliver 50,500 housing units annually between 2025 and 2030.
Whilst growth expectations could be tempered due to continued inflationary pressures and project delays, Ireland’s construction sector is anticipated to bounce back in 2025 as commercial and housing projects gain momentum. Contractors are also set to invest further in modern, more sustainable methods of construction to boost productivity and improve their carbon footprint.
This report will consider the key trends that are influencing the market’s prospects and impacting construction insurance risks, from the small tool theft epidemic to the modern technologies which could enable the high demand for residential housing.