Commercial construction inflation was 1.5% in the first half of the year, the same rate as the six months before that.
It means that the annual median national rate of commercial construction inflation for the year to June was 3%.
That’s more than of the half the rate of 6.2% recorded in the previous 12 months.
The figures are revealed in the Tender Price Index from the Society of Chartered Surveyors Ireland (SCSI).
“These figures illustrate the dramatic change we have experienced with regard to commercial construction inflation over the last two years,” said Donal Hennessy, Chair of the SCSI’s Quantity Surveying Professional Group.
“In the first six months of 2022 inflation reached a record high of 7.5%, while the annual rate of inflation hit 14%. The respective figures now are 1.5% and 3%.”
“The reduction in the rate of increase is due in the main to a more competitive commercial construction market and reduced-price volatility for construction materials.”
“Three out of four respondents believe tender prices will continue to increase in the second half of the year while a fifth anticipate prices will remain the same.”
Mr Hennesy added that surveyors believe the main issues which will impact the market are the introduction of government levies on construction and demolition waste disposal, labour costs and high fuel costs.
The data reveals significant variation around regions.
The highest median rate of inflation of 2.5% was recorded in Munster.
While the lowest was seen in Dublin where it remained at 1.5%, the same as the previous six-month period.
Leinster (excluding Dublin) and Connacht / Ulster both recorded a 1.5% increase down from 2.2% and 2% respectively.
The SCSI said it was a welcome development that the rate of inflation had stayed static for two consecutive six-month periods.
Article Source – Commercial construction cost inflation flat in first half – RTE
