Construction Tender Prices in Ireland — What Homeowners Need to Know in 2025 and 2026

So folks. If you are planning a house extension, renovation, or new build in Dublin or anywhere in Ireland, one of the most important things to understand before you go to tender is what the construction market is doing right now.

Because the price a builder gives you does not exist in a vacuum. It is shaped by the market — by what materials cost, what labour costs, and how busy contractors are at the time you go out to tender.

Here is where things stand heading into 2025 and 2026.

The good news — inflation has stabilised

After a very difficult few years, construction tender price inflation in Ireland has come back down to earth. The Society of Chartered Surveyors Ireland (SCSI) Tender Price Index shows that the annual rate of inflation for 2025 was 2.5% nationally — the lowest recorded since 2020. RTÉ

To put that in context, in the first six months of 2022, construction inflation reached a record high of 7.5%, with the annual rate that year hitting 11.5%. The dramatic swings of the post-pandemic period are behind us. The market has stabilised. Society of Chartered Surveyors Ireland

Labour shortages and cost inflation remain the most significant factors still impacting prices, alongside geopolitical uncertainty and potential supply chain disruptions. But the days of double-digit annual increases are, for now, over. Society of Chartered Surveyors Ireland

What this means for Dublin homeowners

In Dublin and Leinster, tender prices were essentially static in the second half of 2025 — 0% inflation — while Connacht and Ulster saw the highest increases at 1.8% over the same period. Society of Chartered Surveyors Ireland

For a homeowner in Dublin planning an extension or renovation, this is broadly positive news. Contractors are pricing more competitively than they were two or three years ago. The market is more stable. A properly run tender process — with a clear spec and drawings — should produce comparable, reliable prices from reputable builders.

What to expect going into 2026

The stabilisation is welcome, but it does not mean prices are falling. According to the SCSI survey, 69% of quantity surveyors anticipate tender prices will continue to increase in the first half of 2026, with 25% expecting prices to stay the same and 6% anticipating a decrease. Irish Examiner

The direction of travel is still upward — just at a much more manageable pace than the inflation spike of 2021 to 2023.

What this means for your project

A few practical points for anyone tendering a residential project in Dublin in 2025 or 2026:

• Get a cost plan done before you go to tender. A cost plan based on current Dublin market rates will give you a realistic benchmark before builder prices come back. Without it, you have no way to judge whether a tender price is fair.

• Run a proper tender. All builders pricing the same drawings and the same spec. If they are not pricing the same job, you cannot compare them properly.

• Do not assume last year's prices apply. Even with inflation at 2.5%, a project tendered eighteen months ago will price differently today. Always get fresh prices.

• Build in a contingency. Even in a stable market, construction projects carry risk. A 10% contingency on any residential project in Dublin remains the right approach.

The market is in better shape than it has been for several years. Use that to your advantage — get the spec right, run the process properly, and you will be in a much stronger position when the prices come back.

If you want a cost plan or help managing the tender process for your project — here is how I work. → roryconnollyqs.ie/services-explained