Commercial construction tender prices increased by 1% during the second half of 2025 — slowing to the lowest rate of increase since 2020 — as inflation in the sector continues to moderate, a new report from the Society of Chartered Surveyors Ireland (SCSI) shows.
The SCSI’s latest Tender Price Index (TPI) shows the rate of commercial construction inflation eased from the 1.5% recorded in the first half of 2025. This means tender prices throughout 2025 rose by 2.5%, down from the 3% recorded in 2024.
This is the lowest TPI increase recorded since 2020, when it was 2.2%.
The report noted quantity surveyors believe the current trajectory of tender prices as further evidence of a general stabilisation, or return to “business as usual”.
“This presents opportunities for Government investment in a strong market and active labour force,” the report said.
During the second half of 2025, the Connacht/Ulster region saw commercial construction inflation run at 1.8%, resulting in an annual inflation rate of 3.8%, the highest in the country.
Munster’s rate of inflation between July and December stood at 1.5%, leading to an annual inflation rate of 3.5%.
Both the Dublin region and the rest of Leinster, excluding Dublin, recorded 0% inflation during the latter half of 2025. This means their annual inflation rates stood at 1% and 0.5% respectively.
The SCSI said the variation in inflation costs by region can be down to a number of factors, including differing activity levels, availability of resources, and/or a time lag in other factors.
Vice-president of the SCSI Tomás Kelly said chartered quantity surveyors expect tender prices would “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”.
“Of course, geopolitical uncertainty has been highlighted as an area which needs to be monitored as it has the potential to cause a slowdown in foreign direct investment, especially from US investors. Notwithstanding this, the outlook is positive for activity levels given the strong capital programme.”
Commercial construction inflation surged significantly in recent years. In the first six months of 2022, a record high of 7.5% was recorded by the SCSI. This led to an annual inflation rate of 11.5% that year.
Mr Kelly said a survey of SCSI members showed almost six in 10 believe the current market is in “mid-upswing or at peak in material prices”, while two out of 10 believe the market is currently operating in an early downswing, or at the bottom of the cycle.
“Among surveyors, 69% anticipate tender prices will increase for the first half of 2026, with 25% anticipating prices staying the same and 6% anticipating a decrease,” he added.
The report is based on data provided by 170 SCSI chartered quantity surveyors. The TPI is based predominately on new-build projects with values in excess of €1m and covers all regions of Ireland.
The TPI tracks the level of competitiveness in the delivery of commercial construction projects such as office, retail, and industrial units.
