Cost of non-residential construction continues to climb
Rising prices expected to have knock-on effect on house-building costs, says SCSI
The Society of Chartered Surveyors Ireland (SCSI) predicts construction costs will rise by 3 per cent in the first half of 2017. Photograph: iStock
Construction tender prices increased by 6.3 per cent in 2016 and are expected to continue rising in the first half of this year, said the Society of Chartered Surveyors Ireland (SCSI).
The latest Tender Price Index published on Tuesday shows an increase of 2.9 per cent in the second half of 2016.
While the index relates to non-residential projects, the SCSI said it was inevitable that rising prices would have a knock-on effect on house-building costs.
In recent years, it said, the trend has been of consistent price increases – gaining 5.5 per cent last year and 5 per cent in 2014.
The SCSI is predicting that this will continue in the short term with a rise of 3 per cent forecast for the first half of 2017.
“The continued rise in tender prices is reflective of the increasing level of construction activity across the country, most notably in the Greater Dublin Area, where tender price inflation was 3.4 per cent in the last six months of 2016,” he said.
“Outside of Dublin the figure was 2.5 per cent. This is in line with expectations as construction activity continues to increase year on year albeit from a very low base.”