The SCSI has released its Commercial Property Market Monitor Mid-Year Review and Outlook, providing a detailed snapshot of occupier and investor sentiment across Ireland’s office, industrial, and retail sectors. The findings point to a market in early recovery, with industrial assets continuing to lead, prime offices showing steady improvement, and retail stabilising in prime locations despite ongoing challenges in secondary assets.

Key Findings

• Occupier demand:
  • Overall occupier demand index: +13% net balance (down slightly from +17% in Q4 2024 but well above 2023 levels)
  • Industrial: sustained growth at +15%
  • Offices: steady recovery at +15%
  • Retail: softened to +10% but remains in growth phase
• Investor sentiment:
  • Flat at 0% net balance in Q2 2025 (down from +5% in Q4 2024), highlighting ongoing caution
  • Industrial remains the strongest performer; office and retail investment subdued
• Capital & rental values (12-month outlook):
  • Prime Industrial: +2.5% capital, +2.5% rental
  • Prime Office: +2.1% capital, +2.6% rental
  • Prime Retail: +1.0% capital, +1.8% rental
• Valuations & credit conditions:
  • 57% of surveyors now view the market as “fair value” (up from just 11% in 2023)
  • Credit conditions have eased since 2023, supporting cautious recovery
• Occupier trends:
  • 86% of surveyors say tenants increasingly demand health, well-being and sustainability features
  • 68% believe occupiers are willing to pay a premium for such facilities
  • Many businesses are expected to reduce office footprints but consolidate into prime, well-located offices

The SCSI Monitor is based on responses from Chartered Surveyors nationwide and provides an independent barometer of market sentiment. It highlights a commercial property sector at a turning point, with selective growth, ongoing polarisation between prime and secondary assets, and sustainability priorities driving future demand.

The SCSI has published its latest Tender Price Index (TPI), reporting a 1.5% increase in commercial construction tender prices in the first half of 2025. This marks the third consecutive period of modest growth at the same rate, following similar increases in both halves of 2024.

While overall inflationary pressures have moderated, rising labour costs and continuing skills shortages remain the key drivers of tender price movements. Geopolitical uncertainty and potential supply chain disruptions also continue to influence market sentiment.

Key Findings

• National trend: +1.5% in 1H 2025 (same as 2H 2024 and 1H 2024)
• Regional changes:
  • Dublin: +1.0%
  • Leinster excl. Dublin: +0.5%
  • Munster: +2.0%
  • Connacht/Ulster: +2.0%
• Surveyor insights:
  • Two-thirds of respondents reported tender price increases in 1H 2025
  • Half believe building material costs are at mid-upswing or peak levels
• Market pressures: Labour shortages and cost inflation remain the most significant factors impacting prices

The SCSI TPI provides the only independent assessment of commercial construction tender prices in Ireland, based on survey data from Chartered Quantity Surveyors nationwide. It applies to commercial new-build projects valued above €1m and should be used as a guide only.

The latest SCSI Tender Price Index *TPI) shows that while construction costs are continuing to rise, the rate of increase eased significantly in the second half of 2023.

The TPI shows the rate of commercial construction inflation increased nationally by 1.5% in the second half of 2023, down from 2.4% in the first half of last year.

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Access our latest residential property market report featuring a review of 2023 with key trends, affordability metrics and 2024 Outlook.

Included in this report:

• Key Highlights
• Overview of the Housing Market
• Transactional Market in 2023
• Persistent affordability challenges facing new housing
• Frustrations with Residential Letting Rules
• Technology Investment
• Property Market Outlook 2024
• Survey response & comments

The post Annual Residential Market Monitor Review and Outlook 2024 appeared first on Society of Chartered Surveyors Ireland.

The SCSI Cost of New Housing Delivery Report provides real figures on the average delivery costs for three bedroom semi-detached houses constructed in the private sector. The report provides a breakdown of all costs, affordability and viability analyses and key recommendations for policymakers.

Key findings from the Report

• The average cost of delivering a new 3-bed semi in Ireland ranges from €354K in the Northwest to €461K in the Greater Dublin Area
• Costs in the GDA have increased on average by 24% or €90K since the last report over three years ago and by 39% since the first report in 2016
• Nationally, the average cost of delivering a 3-bed semi is €397K
• Excluding Dublin, the average cost across the rest of Ireland is €386K
• As a national average, hard costs which include materials and house building costs make up 53% of overall delivery costs
• Soft costs – land, margin, levies, finance costs, VAT, etc – make up 47%
• The report shows that the combined minimum salary levels required to purchase a new 3 bed semi in the Greater Dublin area is €127K, on average
• The corresponding figure in the Northwest is €85K
• Higher energy, fuel and building material prices are driving hard cost increases
• Soft cost increases are due to land costs, higher finance costs due to interest rate increases and uplift in professional fees

The post Real Cost of New Housing Delivery 2023 Report appeared first on Society of Chartered Surveyors Ireland.