The construction market in Ireland is expected to grow by 6.6% on annual basis to reach EUR 11.83 billion in 2025.
The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 5.2% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of EUR 11.10 billion to approximately EUR 15.38 billion.
This report provides a detailed data-centric analysis of the construction sector in Ireland, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
To remain competitive, stakeholders must focus on automation, AI-driven industrial processes, and sustainable manufacturing practices. Public-private partnerships (PPPs) will play a vital role in financing large-scale industrial zones, while continuous investment in vocational training and workforce development is essential to address skill shortages. As green industrial policies and digital infrastructure gain traction, adopting smart technologies and sustainable building solutions will ensure long-term cost efficiency and sectoral resilience.
The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 8.4%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 5.2% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of EUR 11.10 billion to approximately EUR 15.38 billion.
This report provides a detailed data-centric analysis of the construction sector in Ireland, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors.
The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.
Key Insights
Ireland Residential Construction
The Irish residential construction sector is poised for growth, supported by government initiatives like the "Housing for All" plan and significant investments in urban housing and renovations. The commitment to sustainable, energy-efficient housing and expanding modular construction methods are expected to improve project completion rates and affordability. However, rising material costs, supply chain disruptions, and regulatory hurdles continue to impact the pace of development, requiring streamlined policies and better infrastructure planning to ensure long-term stability. Addressing skilled labor shortages through vocational training and apprenticeship programs will be essential to meeting Ireland’s housing targets. Public-private partnerships (PPPs) will be key in balancing housing supply across affordable and premium segments. Additionally, adopting technology, such as Building Information Modeling (BIM) and sustainability initiatives, will enhance project efficiency and attract investment. Stakeholders must adapt to these industry shifts by prioritizing resilience in project execution and aligning with government-led housing strategies to drive sectoral growth.Macroeconomic Factors
- Rising construction costs due to inflation and material shortages significantly affect residential project budgets, particularly in urban areas. Supply chain disruptions have further led to price volatility, impacting the overall affordability of new housing developments.
- The industry is shifting towards sustainable, energy-efficient housing, with a growing focus on urban redevelopment and renovation of vacant properties. Modular construction and prefabricated housing solutions are gaining traction as cost-effective and time-saving alternatives to traditional building methods.
- However, bureaucratic delays and environmental clearance requirements continue to slow project approvals, creating bottlenecks in the construction process. A shortage of skilled labor, particularly in carpentry and electrical trades, is driving wage inflation, further escalating construction costs.
Project Landscape
- Major ongoing projects, such as new housing units in Dublin and redevelopment initiatives across regional areas, are being undertaken to address Ireland’s housing crisis. The government’s target of constructing 250,000 new homes within five years aims to alleviate the supply-demand imbalance in the market.
- While public sector projects focus on affordable housing and urban regeneration, private developers lead premium residential and mixed-use projects in high-demand locations. Public-private partnerships (PPPs) are emerging as a key funding mechanism to bridge the housing gap.
- Government investment in residential construction remains strong under the National Development Plan, but high public debt levels could limit future spending on new large-scale projects. Increased private sector participation and foreign investment in real estate are expected to support long-term housing supply.
Government Policies & Programs
- The "Housing for All" plan is the government’s flagship initiative to increase housing supply, offering first-time homebuyers and developers incentives. Grants and financial assistance for housing projects in rural areas aim to address regional housing shortages.
- The government provides tax incentives and subsidies for affordable housing projects to encourage developers. Recent regulatory changes, including fast-track approvals and streamlined planning permissions, are being introduced to reduce bureaucratic delays in project execution.
- Housing policy implementation is divided between central government funding and local authority execution. Local governments manage social housing programs and zoning approvals, while the national government oversees investment allocations and regulatory frameworks.
Industry-Specific Developments
- Adopting Building Information Modeling (BIM) and digital construction technologies enhances residential project efficiency. AI-driven project management tools are integrated to optimize planning, budgeting, and execution timelines.
- Sustainability remains a key focus, with government incentives promoting energy-efficient homes and low-carbon construction materials. Net-zero housing initiatives and integrating solar and smart energy systems are becoming standard in new developments.
- Labor shortages in the residential construction sector continue to be challenging, leading to increased investment in apprenticeships and vocational training. Skill development programs and workforce expansion initiatives are being introduced to meet the growing demand for qualified professionals.
Ireland Commercial Construction
The commercial construction sector in Ireland is evolving to meet businesses' changing demands, particularly with the rise of hybrid work models and sustainability requirements. While urban regeneration projects and green-certified buildings present new opportunities, inflation and economic uncertainty pose significant challenges to investment feasibility.Developers focus on flexible office spaces and mixed-use developments to maintain relevance in a shifting commercial real estate market. To remain competitive, stakeholders must prioritize innovation and sustainable building practices, leveraging smart technologies and energy-efficient designs. The government’s tax incentives and urban revitalization programs provide crucial support, but streamlined regulatory approvals will be necessary to accelerate project execution. As demand for specialized skills in modern construction methods grows, investing in workforce training programs will be critical for long-term sector resilience.Macroeconomic Factors
- Rising material and energy costs are directly impacting project feasibility and profitability in Ireland's commercial construction sector. Developers are adjusting investment strategies to mitigate inflationary pressures and maintain financial viability.
- A shift towards flexible office spaces shapes the industry as companies adapt to hybrid work models. Sustainability is also driving demand, with businesses increasingly seeking green-certified commercial buildings that meet energy efficiency standards.
- Despite strong demand for modern, multi-functional commercial spaces, economic uncertainty and fluctuating investment conditions pose risks. Additionally, declining demand for traditional office spaces forces developers to rethink their commercial real estate strategies.
Project Landscape
- Several large-scale office and mixed-use developments are underway, particularly in Dublin’s Docklands and regional urban centers. Redevelopment projects in smaller cities aim to enhance commercial and retail infrastructure.
- The private sector dominates commercial construction, leading office spaces, retail, and hospitality projects. Meanwhile, the public sector focuses on regulatory frameworks and infrastructure to support economic growth.
- Despite continued investment, developers remain cautious due to economic volatility. Future projects focusing on mixed-use commercial developments prioritize sustainability, flexibility, and long-term adaptability.
Government Policies & Programs
- The Irish government is encouraging urban regeneration projects, providing financial incentives to modernize commercial real estate. City-center revitalization programs are attracting investment in underutilized areas.
- Tax incentives for commercial developments in designated urban zones are helping stimulate growth. Revised building codes require higher energy efficiency standards, further influencing construction trends.
- While national policies drive broad commercial development strategies, local governments oversee planning approvals and compliance. This creates a decentralized but coordinated approach to commercial real estate regulation.
Industry-Specific Developments
- Smart building technologies, including AI-driven energy management and automation systems, are improving operational efficiency. Developers are integrating digital infrastructure to enhance tenant experience and long-term property value.
- Sustainability remains a priority, with a growing emphasis on LEED and BREEAM certifications. Many new projects incorporate renewable energy sources and eco-friendly materials to meet stringent environmental regulations.
- The industry requires a skilled workforce with expertise in smart building systems, modular construction, and sustainable practices. Specialized training programs are expanding to meet the rising demand for green construction expertise.
Ireland Institutional Construction
The institutional construction sector in Ireland is poised for long-term growth, fueled by government investments in healthcare, education, and infrastructure projects. However, persistent labor shortages, cost overruns, and supply chain disruptions remain key concerns, requiring streamlined policies and improved project management strategies to maintain momentum. To capitalize on emerging opportunities, stakeholders must integrate innovative construction technologies such as BIM, AI, and modular building techniques to enhance efficiency and reduce costs. The public-private collaboration will be crucial in overcoming financial and regulatory hurdles and ensuring the timely execution of large-scale projects. Expanding workforce training programs will help address labor shortages, equipping the sector with the necessary skills to support Ireland’s long-term institutional construction ambitions.Macroeconomic Factors
- The Irish institutional construction sector contracted primarily due to rising material costs, high inflation, and increased borrowing rates. These factors have made project financing more expensive and delayed large-scale developments.
- Despite current economic challenges, the industry is expected to recover. This growth will be fueled by government-backed transport, energy, and housing infrastructure investments, driving renewed demand for institutional projects.
- However, persistent supply chain issues and labor shortages continue to impact the sector, leading to project delays and cost escalations. Addressing these risks will require enhanced procurement strategies and expanded workforce training programs to ensure sustainable growth.
Project Landscape
- Several large-scale projects, including the National Children's Hospital in Dublin, have faced budget overruns and delays, reflecting institutional construction's financial and logistical challenges. Other planned projects aim to expand Ireland’s healthcare and education infrastructure to meet growing demand.
- The public sector remains the primary investor in institutional construction, particularly in healthcare, education, and public buildings. Meanwhile, the private sector plays a greater role in commercial development, with some overlap in public-private partnership (PPP) initiatives.
- The government's commitment to infrastructure is reflected in the €10 billion allocated under the Gati Shakti Master Plan, which focuses on multimodal transport and institutional expansion. However, the rising cost of capital and economic uncertainties may influence future budget allocations.
Government Policies & Programs
- The Gati Shakti National Master Plan drives integrated institutional infrastructure growth by streamlining logistics and improving connectivity. This initiative is expected to enhance project execution timelines and attract additional investments.
- Tax incentives for private developers investing in renewable energy and public transit projects support sustainability efforts in institutional construction. These regulatory changes encourage green building initiatives and energy-efficient designs.
- The central government leads major infrastructure planning and funding at the governance level, while state governments handle project execution and regional planning. This decentralized approach ensures flexibility but requires better coordination to meet national targets.
Industry-Specific Developments
- Technological advancements such as Building Information Modeling (BIM), drones, and AI-driven project management tools are improving efficiency in institutional construction. By optimizing workflows, these innovations help reduce costs and minimize delays.
- There is a growing push for sustainability, with new projects prioritizing low-carbon materials, energy-efficient building designs, and smart infrastructure solutions. Compliance with global environmental standards is becoming an industry benchmark.
- Workforce shortages remain a key challenge, especially in specialized trades for institutional projects. Increased investment in vocational training and apprenticeship programs is critical to bridging the skills gap and meeting future construction demands.
Ireland Industrial Construction
Ireland’s industrial construction sector is expanding, with high-tech manufacturing, pharmaceutical production, and renewable energy projects driving growth. Government-backed initiatives and foreign direct investment (FDI) incentives strengthen Ireland’s position as a global hub for advanced manufacturing. However, rising material costs, regulatory complexities, and land acquisition hurdles delay project execution, necessitating more efficient approval processes and strategic policy interventions to maintain momentum.To remain competitive, stakeholders must focus on automation, AI-driven industrial processes, and sustainable manufacturing practices. Public-private partnerships (PPPs) will play a vital role in financing large-scale industrial zones, while continuous investment in vocational training and workforce development is essential to address skill shortages. As green industrial policies and digital infrastructure gain traction, adopting smart technologies and sustainable building solutions will ensure long-term cost efficiency and sectoral resilience.
Macroeconomic Factors
- The rising cost of raw materials such as steel, cement, and machinery puts financial pressure on industrial construction projects, increasing overall expenses. Additionally, currency fluctuations and high import duties on industrial equipment are further escalating manufacturers' costs.
- Ireland’s industrial sector is expanding, particularly with initiatives like the Dublin-Belfast Economic Corridor, which aims to improve regional connectivity. The growth of high-tech manufacturing, including pharmaceutical and medical device production, drives demand for industrial infrastructure.
- However, land acquisition delays and complex regulatory approvals slow project development. The shortage of skilled labor in automation, robotics, and precision manufacturing remains a key barrier to achieving sectoral efficiency.
Project Landscape
- Several high-profile projects are underway, including a new pharmaceutical manufacturing facility in Dublin and a large-scale data center in County Meath. The renewable energy sector also sees increased investment in clean energy manufacturing projects.
- The private sector is leading industrial construction investments, particularly in pharmaceuticals, technology, and renewable energy. Meanwhile, the public sector is focused on developing transport corridors and essential infrastructure to support manufacturing growth.
- Budget allocations for industrial expansion remain strong, with the government prioritizing high-tech and sustainable manufacturing. Foreign direct investment (FDI) is increasing, particularly from global technology and energy companies.
Government Policies & Programs
- The "Making Ireland a Global Hub for Advanced Manufacturing" initiative supports domestic manufacturing growth by reducing import dependency and providing financial incentives. The National Development Plan also addresses logistics and supply chain efficiency.
- The government has introduced tax incentives for automation and digital manufacturing to streamline industrial construction. Additionally, fast-track approvals and single-window clearance systems are helping to reduce bureaucratic delays.
- While the central government sets industrial policies and funds infrastructure, state governments offer location-specific incentives such as land subsidies and infrastructure support. Local municipalities also approve industrial zones and environmental clearances.
Industry-Specific Developments
- Technological advancements in AI, IoT, and robotics significantly enhance production efficiency and factory automation. Digital twin technology is also being adopted to improve industrial facility design and operations.
- Sustainability is a growing priority, with renewable energy-powered industrial facilities and low-carbon construction materials becoming more common. The circular economy model is being promoted, with increased industrial waste recycling and water conservation efforts.
- A shortage of engineers and skilled technicians in high-tech industries such as semiconductors and clean energy is affecting project timelines. Government-backed vocational training programs are helping to address labor shortages in specialized industrial sectors.
Ireland Infrastructure Construction
Ireland’s infrastructure construction sector is positioned for growth, with government-backed investments in transport, energy, and housing projects driving expansion. Despite the contraction, the sector is expected to recover. However, high construction costs, regulatory delays, and a lack of streamlined planning processes continue to hinder progress. Addressing these issues through policy reforms and increased development financing will be crucial for sustained sectoral growth. To maximize opportunities, stakeholders should adopt modern construction methods that enhance efficiency and reduce costs. Public-private partnerships (PPPs) will be vital in funding and executing sustainable infrastructure projects, particularly green energy and smart urban developments. Additionally, expanding vocational training programs to bridge labor shortages and improve workforce capacity will be key to ensuring that Ireland’s infrastructure sector remains resilient, competitive, and aligned with long-term national development goals.Macroeconomic Factors
- The Irish construction industry is contract due to inflation, high interest rates, and rising construction material costs. These challenges are increasing project costs and impacting investment decisions across infrastructure projects.
- Despite short-term setbacks, significant transport and energy infrastructure investments are expected to drive long-term sectoral growth. Projects focusing on sustainability and smart urban planning are gaining traction as Ireland modernizes its infrastructure.
- However, policy inefficiencies and planning delays hinder the sector from scaling up construction to meet national housing and infrastructure demands. The central bank has stressed the need for reforms to increase development finance and expedite project approvals.
Project Landscape
- The National Development Plan (NDP) 2021-2030 has allocated €165 billion to key infrastructure projects, including the National Broadband Plan, which aims to expand digital connectivity across Ireland. Other large-scale projects focus on road expansions, public transport, and renewable energy facilities.
- The public sector leads infrastructure investments, while public-private partnerships (PPPs) are increasingly used for green energy and sustainable industrial developments. The private sector is key in commercial and transport-related projects, particularly logistics and smart city initiatives.
- Despite economic challenges, Ireland’s infrastructure will grow. The focus on energy-efficient projects and resilient infrastructure will shape long-term investment strategies.
Government Policies & Programs
- The National Development Plan (NDP) 2021-2030 is the government’s primary framework for economic growth and regional infrastructure expansion. It includes major public transport, housing, and energy infrastructure investments to boost long-term economic resilience.
- To tackle planning inefficiencies and improve financing for infrastructure projects, the government is streamlining approval processes and offering incentives to developers. Measures include fast-track approvals for high-priority projects and increased funding for sustainable initiatives.
- While the central government sets national infrastructure policies, local municipalities manage zoning approvals and environmental compliance. Effective coordination between federal, state, and local authorities remains essential to accelerate infrastructure project timelines.
Industry-Specific Developments
- Ireland lags in adopting modern construction methods, with traditional labor-intensive practices still dominant. Newer techniques, such as modular construction and prefabrication, could cut costs by 20-40% and reduce labor dependency.
- Sustainability is a major focus, with investments in renewable energy infrastructure, circular economy practices, and green building materials. Net-zero energy projects and climate-resilient urban planning are gaining priority in upcoming developments.
- The industry operates at 77% capacity, requiring more skilled labor to meet project demands. Expanded vocational training and recruitment initiatives are addressing workforce shortages in engineering, skilled trades, and project management.
Scope
Market Data and Insights: This report provides market size and forecast across 40+ construction segments for ten years from 2020 - 2029 in Ireland. KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
Ireland Economic Indicators
Ireland Top Cities Construction Data
Ireland Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Housing type (multi family, single family)
- Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Price point/income level (luxury, mid-tier, affordable)
- Construction stage (new construction, re-development & maintenance)
Ireland Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Green building by Housing type (multi family, single family)
- Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
- Green building by Price point/income level (luxury, mid-tier, affordable)
Ireland Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office (further broken down by Grade A, Grade B, and Grade C)
- Retail (further broken down by Grade A, Grade B, and Grade C)
- Hospitality (further broken down by Grade A, Grade B, and Grade C)
- Restaurant (further broken down by Grade A, Grade B, and Grade C)
- Entertainment
- Sports facility
- Other commercial building construction
- Construction stage (new construction, re-development & maintenance)
Ireland Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Office green building construction
- Retail green building construction
- Hospitality green building construction
- Restaurant green building construction
- Entertainment green building construction
- Sports facility green building construction
- Other commercial green building construction
Ireland Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
- Manufacturing Plants building construction
- Chemical & Pharmaceutical building construction
- Metal & Material Processing building construction
- Construction stage (new construction, re-development & maintenance)
Ireland Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare construction
- Educational construction
- Other building construction
- Construction stage (new construction, re-development & maintenance)
Ireland Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- Healthcare green building construction
- Educational green building construction
Ireland Infrastructure Construction Sectors: 10-year market size & forecast in value terms by
- Marine and inland water infrastructure
- Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
- Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
- Construction stage (new construction, re-development & maintenance)
Ireland Green Infrastructure Construction: 10-year market size & forecast in value terms
Ireland Construction Cost Structure Analysis: 10-year market size & forecast in value terms
- Cost Analysis by Type (Material, Labour, Equipment, Others)
- By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
- By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
- By Type of Construction (New, Re-Development)
- By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
- Type of Labour (Skilled vs. unskilled)
Reasons to buy
- Comprehensive Insight into Construction Market Dynamics: Gain a deep understanding of the construction market, including opportunities, industry trends, and key drivers across over 40+ market segments and sub-segments.
- Detailed Analysis of Construction Costs: Explore construction costs broken down by type, including material and labor costs. The report provides detailed information on costs by construction type and worker.
- Top Ten Cities Construction Value: Access valuable data on the construction market size for major cities, focusing on key city-level sectors.
- In-Depth Volume and Value Data: Obtain a thorough understanding of the market from both value and volume perspectives, covering historical data and forecasts by activity and units.
- Strategic Market-Specific Insights: Formulate targeted strategies by identifying growth segments and opportunities and assessing key trends, drivers, and risks within the construction industry.
- City-Level Trend Analysis: Get detailed trend analyses for tier-1, tier-2, and tier-3 cities, offering actionable insights for urban-focused strategies.
Table of Contents
1 About this Report
2 Ireland Construction Industry Dynamics and Growth Prospects
3 Key economic indicators of Ireland
4 Ireland Building Construction Analysis by Key Cities
5 Ireland Residential Construction Industry Market Size and Forecast
6 Analysis by Residential Construction Markets Outlook by Construction type
7 Analysis by Residential Construction Markets Outlook by Key Cities
8 Analysis by Residential Construction Markets Outlook by Price Point
9 Ireland Commercial Construction Industry Market Size and Forecast
10 Office Building Construction Outlook
11 Retail Building Construction Outlook
12 Hospitality Building Construction Outlook
13 Restaurant Building Construction Outlook
14 Sports Facility Building Construction Outlook
15 Other Commercial Building Construction Outlook
16 Ireland Institutional Construction Industry Market Size and Forecast
17 Outlook and Growth Dynamics by Institutional Building Construction Sectors
18 Ireland Industrial Construction Industry Market Size and Forecast
19 Outlook and Growth Dynamics by Industrial Building Construction Sectors
20 Infrastructure Construction Outlook
21 Ireland Marine and Inland Water Infrastructure Construction Industry Market Size and Forecast
22 Ireland Utility System Infrastructure Construction Industry Market Size and Forecast
23 Ireland Transport Infrastructure Construction Industry Market Size and Forecast
24 Ireland Construction Industry Market Size and Forecast by Cost Type
25 Ireland Construction Cost Industry Market Size and Forecast by Type of Material
26 Ireland Construction Cost Industry Market Size and Forecast by Labour
27 Ireland Construction Industry Market Size and Forecast by Building Type
28 Ireland Construction Industry Market Size and Forecast by Renovation Building Type
29 Ireland Construction Industry Market Size and Forecast by New Building
30 Ireland Construction Industry Market Size and Forecast by Material Cost
31 Ireland Construction Industry Market Size and Forecast by Construction Worker
32 Further Reading
List of Figures
List of Tables