Arcadis, a leading global design and consultancy firm for natural and built assets, has released its Autumn 2025 Ireland Construction Market View Report, providing fresh insights into Ireland’s construction sector. The analysis points to major growth opportunities in housing, rail, and infrastructure investment, particularly in the wake of the government’s recently announced National Development Plan (NDP).
Ireland’s construction industry experienced rapid growth in early 2025, but housing delivery continues to lag behind demand. The NDP, with its ambitious capital spending of €20.6 billion over five years, aims to tackle this gap by driving up housing completions and reshaping the nation’s infrastructure landscape.
Key Findings from the Report
- Housing Sector: Despite a 7% fall in completions in 2024, the sector is expected to rebound. To meet government targets of 50,000 homes annually by 2030, production must rise by 65%. The NDP’s interventions and revised planning frameworks are set to pave the way for this growth.
- Rail and Infrastructure: Transport investment has surged by 70% in current prices. Major projects such as the Dublin Metrolink, the Navan rail line, and the All-Island Strategic Rail Review have been prioritized, boosting confidence in Ireland’s long-term infrastructure development.
- Labour and Contractors: Construction employment hit 182,000 workers in Q1 2025, the highest since 2012. A two-year wage deal covering 50,000 operatives stabilizes pay growth at an average of 3.3% per year, mitigating short-term inflation risks while ensuring contractor availability remains strong.
- Inflation Forecast: Projections remain steady at 4–5% for 2025 and 4–6% for 2026. However, inflationary pressures are expected to rise in 2027 (5–6%) as the delivery of NDP projects accelerates.
Expert Insight
Simon Rawlinson, Head of Strategic Research and Insight at Arcadis, emphasized:
“The ambitious targets and investment in the National Development Plan underscore the critical need to address housing shortages and modernize Ireland’s rail systems. The conditions are in place for growth, but Ireland’s construction industry must accelerate delivery to seize this opportunity.”
With stable inflation, healthy labour supply, and robust government investment, the Arcadis report suggests that Ireland’s construction sector is well-positioned to meet the demands of rapid urbanization, economic resilience, and sustainable development.
