From a €38.2 billion surge powered by housing and roads to a near-full employment workforce, Ireland's construction industry is building an economic powerhouse one brick and blueprint at a time.
Key Takeaways
- In 2023, the total value of construction output in Ireland reached €38.2 billion, marking a 12.5% increase from 2022 driven by residential and infrastructure projects
- Construction sector contributed 13.4% to Ireland's GDP in 2023, up from 11.8% in 2022, reflecting robust housing demand
- Average annual growth rate of Irish construction industry from 2019-2023 was 8.7%, fueled by government investment in public works
- Total employment in Ireland's construction sector was 170,000 persons in Q4 2023, up 8% from 2022
- Construction unemployment rate dropped to 4.2% in 2023 from 6.1% in 2022
- Average hourly earnings in construction rose to €28.50 in 2023, a 5.8% increase YoY
- Total number of major residential projects underway was 450 in 2023, delivering 25,000 units
- National Broadband Plan construction completed 85% of 96,000km fiber rollout by end 2023
- Dublin MetroLink project advanced to 25% completion in 2023, cost €3.2 billion
- Average price of ready-mix concrete rose 4.2% to €112 per cubic meter in Q4 2023
- Steel rebar prices averaged €850 per tonne in 2023, up 2% YoY due to import reliance
- Timber (softwood) costs increased 6% to €520 per cubic meter in 2023
- Construction waste recycling rate reached 88% in 2023, up from 82% in 2022
- 35% of new builds used low-carbon concrete in 2023 under green procurement
- Building Energy Rating (BER) A-rated new homes were 65% of completions in 2023
Ireland's construction sector is booming, driven by strong residential demand and major government infrastructure projects.
Economic Indicators
- In 2023, the total value of construction output in Ireland reached €38.2 billion, marking a 12.5% increase from 2022 driven by residential and infrastructure projects
- Construction sector contributed 13.4% to Ireland's GDP in 2023, up from 11.8% in 2022, reflecting robust housing demand
- Average annual growth rate of Irish construction industry from 2019-2023 was 8.7%, fueled by government investment in public works
- Construction investment as a percentage of GNI* in Ireland stood at 9.2% in 2023, highest since 2008 peak
- Value of new residential construction orders in Q4 2023 was €2.1 billion, 15% higher than Q4 2022
- Non-residential construction output grew by 10.3% YoY in 2023 to €14.5 billion, led by commercial developments
- Infrastructure construction spending hit €7.8 billion in 2023, representing 20% of total sector output
- Forecast for Irish construction growth in 2024 is 6.8%, with residential leading at 9.2%
- Construction deflation rate in Ireland was -1.2% in 2023 due to falling material costs post-Ukraine crisis
- Total capital investment in construction reached €42.3 billion in 2023 including public-private partnerships
- Residential construction permits issued increased by 22% to 35,000 units in 2023
- Sector productivity growth in construction was 4.1% in 2023, above EU average of 2.9%
- Construction exports from Ireland (prefab modules) valued at €1.2 billion in 2023
- Public capital expenditure on construction was €10.1 billion in Budget 2024 allocations
- Private sector construction investment grew 14% to €25.6 billion in 2023
- Construction value added tax receipts rose 18% to €3.4 billion in 2023
- Industry capacity utilization rate reached 87% in Q3 2023, indicating near full employment
- Cumulative construction output growth 2020-2023 averaged 7.9% annually
- Construction loans approved by Irish banks totaled €8.9 billion in 2023, up 11%
- Sector's share of total business investment was 28% in 2023
- Construction PMI index averaged 52.3 in 2023, indicating expansion
- Total floor area completed in new builds was 4.2 million sqm in 2023
- Engineering construction output up 13% to €9.8 billion in 2023
- Construction R&D expenditure was €450 million in 2023, 1.2% of output
- Sector import content of output was 35% in 2023, down from 42% in 2021
- Construction bankruptcy rate fell to 1.2% in 2023 from 2.8% in 2022
- Average tender price inflation was 3.5% in 2023
- Total sector turnover per employee was €285,000 in 2023
- Construction's multiplier effect on economy estimated at 2.8 in 2023
- Foreign direct investment in Irish construction firms was €2.1 billion in 2023
Economic Indicators Interpretation
Ireland’s construction industry is hammering out an economic boom, not just building houses and roads but actively rebuilding its own weight in the national economy.
Employment Statistics
- Total employment in Ireland's construction sector was 170,000 persons in Q4 2023, up 8% from 2022
- Construction unemployment rate dropped to 4.2% in 2023 from 6.1% in 2022
- Average hourly earnings in construction rose to €28.50 in 2023, a 5.8% increase YoY
- 45% of construction workforce were non-EEA nationals in 2023, mainly from Eastern Europe
- Number of self-employed in construction increased by 12% to 42,000 in 2023
- Female participation in construction workforce was 12.5% in 2023, up from 10.8% in 2020
- Youth employment (18-24) in sector grew 15% to 18,500 in 2023
- Overtime hours in construction averaged 4.2 hours/week per employee in 2023
- Registered apprentices in construction reached 12,000 in 2023, 20% increase
- Construction vacancy rate was 3.8% in Q4 2023, highest among sectors
- Average age of construction workers was 42.3 years in 2023, with 28% over 50
- Part-time employment in construction was 8.7% of total in 2023
- Skilled trades shortage affected 65% of firms in 2023 survey
- Labor turnover rate in construction was 14.2% in 2023
- Remote working in construction offices was 22% of admin staff in 2023
- Union membership in sector declined to 18% in 2023 from 22% in 2020
- Health & safety training coverage reached 92% of workforce in 2023
- Migrant worker integration programs trained 5,200 in construction skills in 2023
- Wage premium for construction over average economy was 12% in 2023
- Temporary agency workers in construction numbered 15,000 in 2023, up 25%
- Disability employment rate in construction was 4.1% in 2023
- Night shift employment accounted for 11% of hours in 2023
- Upskilling programs reached 28,000 workers in 2023 via SOLAS
- Construction employment growth forecast at 4.5% for 2024 to 177,500 jobs
- Zero-hour contracts in sector reduced to 2.1% in 2023
- Average job tenure in construction was 7.2 years in 2023
Employment Statistics Interpretation
Ireland's construction sector is thriving with more jobs, higher wages, and impressive safety training, yet it's precariously balanced on a foundation of skilled labor shortages, an aging workforce, and a heavy reliance on migrant workers, all while struggling to hire enough young people and women to build its future.
Material Costs
- Average price of ready-mix concrete rose 4.2% to €112 per cubic meter in Q4 2023
- Steel rebar prices averaged €850 per tonne in 2023, up 2% YoY due to import reliance
- Timber (softwood) costs increased 6% to €520 per cubic meter in 2023
- Asphalt price per tonne was €95 in 2023, 3.5% higher than 2022
- Cement dispatch volumes reached 2.8 million tonnes in 2023, price €120/tonne avg
- Brick prices averaged €0.85 per unit in 2023, stable YoY
- Diesel fuel for construction equipment cost €1.65/liter avg in 2023
- PVC piping costs rose 5% to €4.20 per meter in 2023
- Roof tile prices €1.45 each avg, up 1.8% in 2023
- Electrical copper wire €9,500/tonne in 2023, volatile supply
- Insulation materials (wool) €25/sqm avg price in 2023, down 8% YoY
- Glass for facades €45/sqm in 2023 commercial projects
- Plasterboard €12.50/sheet, stable in 2023
- Paint costs €35/10L tin avg for exteriors in 2023
- Aggregates (crushed rock) €18/tonne in 2023
- Bitumen for roads €650/tonne in 2023, up 4%
- Aluminum profiles €3,200/tonne avg 2023
- Sanitaryware units avg €250 each in 2023 residential
- HVAC equipment costs rose 7% to €15,000/unit avg in 2023
- Scaffolding rental €1.20/sqm/day in 2023 urban areas
- Precast concrete elements €180/cum in 2023
- Waterproofing membranes €8/sqm in 2023
- Floor screed €22/sqm applied in 2023
- Reinforcing mesh €2.50/sqm in 2023
- Lime render €18/sqm in 2023 heritage projects
- Solar panel installation materials €120/Wp in 2023
- Steel roofing sheets €16/sqm in 2023
Material Costs Interpretation
Ireland's builders, in a heroic feat of fiscal juggling, are somehow holding the line on bricks and plasterboard while being pelted from all sides by pricier concrete, thirsty machinery, and a shockingly expensive desire for warm homes and sunny roofs.
Project Data
- Total number of major residential projects underway was 450 in 2023, delivering 25,000 units
- National Broadband Plan construction completed 85% of 96,000km fiber rollout by end 2023
- Dublin MetroLink project advanced to 25% completion in 2023, cost €3.2 billion
- 1,200km of new cycleways built under Greenways Strategy in 2023
- New hospital projects: 8 under construction totaling 1.5 million sqm in 2023
- Offshore wind farm developments: 5 projects with 3GW capacity approved in 2023
- Social housing delivery reached 12,500 units via local authorities in 2023
- Road resurfacing covered 4,500km nationwide in 2023 under maintenance program
- Data center constructions added 500MW capacity in Leinster region 2023
- School building program completed 250 projects, 1.2 million sq ft in 2023
- Flood defense schemes: 45 schemes progressed, protecting 25,000 properties in 2023
- Hotel developments: 15 new builds with 4,500 rooms completed in 2023
- Renewable energy projects: 2GW solar and wind under construction in 2023
- Public transport: Luas extensions added 5km track in Dublin 2023
- Wastewater treatment plants upgraded at 120 sites in 2023
- Retail park expansions totaled 300,000 sqm in 2023
- Airport expansions: Dublin runway project 40% complete in 2023
- Timber frame housing projects delivered 8,000 units in 2023
- Gas pipeline network extended by 250km in 2023
- University campus expansions added 200,000 sqm across 7 institutions in 2023
- Modular construction projects numbered 120, saving 20% time on average in 2023
- Rail projects: DART+ advanced 30%, electrifying 50km in 2023
- Industrial parks developed 1.5 million sqm logistics space in 2023
- Heritage restoration projects: 75 sites completed, €150m invested in 2023
Project Data Interpretation
Ireland is proving it’s not just blarney by building a remarkably modern, connected, and greener society from the ground up, one home, fiber cable, cycleway, wind turbine, and metro line at a time.
Sustainability and Regulations
- Construction waste recycling rate reached 88% in 2023, up from 82% in 2022
- 35% of new builds used low-carbon concrete in 2023 under green procurement
- Building Energy Rating (BER) A-rated new homes were 65% of completions in 2023
- Carbon emissions from construction fell 12% to 4.2 MtCO2eq in 2023
- Nearly Zero Energy Building (NZEB) compliance achieved in 92% of public projects 2023
- Biodiversity net gain mandated in 40% of local authority planning in 2023
- Renewable materials usage up to 28% of total volume in 2023 residential
- Water usage efficiency improved 15% in new commercial builds 2023
- 75% reduction target for embodied carbon set for public projects by 2030, progress 18% in 2023
- Modular offsite construction reduced waste by 25% avg in 2023 projects
- Planning permissions with sustainability conditions rose to 95% in 2023
- Heat pump installations in new builds hit 45% penetration in 2023
- Green Public Procurement applied to 60% of construction tenders in 2023
- Timber certification (FSC/PEFC) covered 85% of used softwood in 2023
- Energy Performance Certificates issued 120,000 for construction in 2023
- Construction sector Scope 3 emissions reporting mandatory for top 100 firms from 2023
- Rainwater harvesting systems in 22% of new non-residential builds 2023
- EV charging infrastructure mandated in 100% of new commercial carparks 2023
- Circularity index for materials reached 45% in pilot projects 2023
- Noise regulation compliance fines totaled €2.5m in 2023 for breaches
- Health & Safety Authority inspections up 20% to 15,000 in construction 2023
- Building Regulations Part L (energy) amendments enforced from Jan 2023 tightened U-values by 15%
- Biodiversity action plans required for projects over €5m from 2023
- Passive House certifications issued 450 for Irish projects in 2023
- Waste levy on construction increased to €120/tonne in 2023
- Green Bonds issued for construction projects totaled €1.2bn in 2023
- Air quality monitoring at sites showed PM10 compliance 98% in 2023
- Retrofitting grants disbursed €450m for 35,000 homes in 2023
Sustainability and Regulations Interpretation
The Irish construction industry is now building with the subtlety of a sledgehammer but the precision of a surgeon, turning what was once a brute-force carbon belcher into a surprisingly graceful, green-tinged machine that recycles its mess, pumps in heat pumps, and even makes room for biodiversity, all while the regulators keep a sharp eye on the bottom line and the air quality.
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