Tender price growth slows to lowest level in five years as commercial construction stabilises
National annual increase of 2.5% in 2025 with Dublin and Leinster flat in second half
17 February 2026 | editor@breakingground.news
Commercial construction tender prices rose by 2.5% nationally in 2025, marking the lowest annual increase recorded in five years, according to the latest Tender Price Index published by the Society of Chartered Surveyors Ireland (SCSI).
The index shows that tender prices increased by just 1% in the second half of 2025, down from 1.5% in the first six months of the year. The overall annual increase of 2.5% compares with 3% in 2024 and is the lowest recorded since 2020, when inflation stood at 2.2%.
The SCSI’s Tender Price Index, established in 1998 and compiled from a survey of chartered quantity surveyors working on commercial projects, tracks competitiveness across office, retail and industrial construction nationally.
Regional data for the second half of 2025 shows tender prices were static in Dublin and in Leinster excluding Dublin, both recording 0% inflation. Munster recorded a median increase of 1.5%, while Connacht/Ulster saw the highest increase at 1.8%.
On an annual basis, Connacht/Ulster recorded the strongest growth at 3.8%, followed by Munster at 3.5%. Dublin recorded 1% annual inflation, while Leinster excluding Dublin recorded 0.5%. The SCSI notes that regional variations can reflect differences in activity levels, resource availability and timing effects.
The latest results mark a sharp contrast to the volatility seen in recent years. In the first half of 2022, commercial construction inflation reached 7.5%, with annual inflation that year peaking at 11.5%. The current half-year and annual figures of 1% and 2.5% respectively point to a more stable pricing environment.
Survey sentiment suggests a market that has moved beyond the acute disruption of recent years. According to the report, 58% of respondents believe the market is in a mid-upswing or at peak in material prices, while 19.8% believe it is operating in an early downswing or at the bottom of the cycle.
Looking ahead to the first half of 2026, 69% of surveyors anticipate further tender price increases, 25% expect prices to remain unchanged and 6% anticipate a decrease.
The SCSI states that the relative stability over the past three years reflects a return to more typical market conditions following pandemic-related disruption and the inflationary pressures linked to the war in Ukraine. It also notes that geopolitical uncertainty remains a factor to monitor, particularly in the context of foreign direct investment, although a strong public capital programme is expected to support activity levels.
The TPI relates to commercial new-build projects, predominantly with values in excess of €1m, and is based on median price movements across regions and project types. The society advises that it should be used as a general guide, as project-specific pricing will vary depending on complexity, location and programme.
