Construction Costs Rising in Dublin
Guide by BAYT

If you’re planning a renovation or extension in the Dublin area, it’s important to understand that construction costs are significantly higher than they were in previous years.

Rising labour costs, material prices, and strong demand have all contributed to Dublin becoming one of the most expensive cities in Europe to build in.

Below, we break down what’s happening, why it matters, and how working with a design-and-build partner like BAYT can help you manage these rising expenses.

What’s Going On with Costs?

Recent industry data highlights the ongoing cost pressures:

• According to the Society of Chartered Surveyors Ireland (SCSI), national commercial tender prices rose by approximately 1.5% in the first half of 2025
• In the Dublin region specifically, tender prices increased by around 1.0% during the same period
• A report by Turner & Townsend shows average build costs in Dublin at approximately €3,692 per m², placing the city among the most expensive in Europe for construction
• Separate analysis indicates that from late 2019 to Q3 2023, construction costs in Ireland increased by nearly 23%

While the sharp spikes seen in previous years have eased, overall cost levels remain high.

Why Are Costs So High in Dublin?

Several factors continue to drive construction costs upward:

• Labour shortages: A limited pool of skilled workers has driven wage inflation. The SCSI consistently identifies labour availability as a major pressure
• Material price inflation: Although volatility has reduced, materials such as insulation, steel, plasterboard, and metals remain expensive
• High demand for construction: Strong activity in residential, commercial, housing, and data-centre projects keeps capacity tight, particularly in Dublin
• Higher regulatory standards: Increased requirements for energy performance, insulation, airtightness, and mechanical systems add cost to modern builds

Together, these factors create a challenging but relatively stable high-cost environment.

What This Means for Your Renovation or Extension

For homeowners, these conditions have practical implications:

• You should expect higher build costs than those seen even a few years ago in the same neighbourhood
• The margin for error in budgeting is smaller, underestimating costs or delays can quickly affect affordability
• Early decisions on layout, specification, and materials are more important than ever
• Value engineering and clear scope definition play a critical role in controlling costs

In a high-cost city like Dublin, smart planning and informed choices are essential.

How BAYT Helps Manage Rising Costs

At BAYT, our design-and-build process is specifically structured to help clients navigate this cost environment:

• We provide detailed cost planning early in the design phase, giving you a realistic budget before construction begins
• Design decisions are aligned with build-cost realities, ensuring aesthetics and budget work together
• We prioritise labour- and material-efficient solutions, such as simpler building forms and standardised components
• Design, construction, and project management are coordinated under one roof, reducing cost overruns caused by miscommunication or multiple contracts
• We actively monitor inflation trends and build appropriate contingencies into your project from the outset

This integrated approach helps maintain cost control without compromising quality.

The Takeaway

Construction costs in Dublin remain elevated and complex, even though they are more stable than during the peak volatility of recent years.

With the right approach and the right team, it is still entirely possible to deliver a high-quality renovation or extension within budget.

The key is careful planning, early decision-making, and working with professionals who understand the local cost landscape.

If you’re considering a project in Dublin, BAYT can help you plan realistically, manage costs proactively, and build with confidence.