A year’s worth of Dublin office space in a quarter boosts construction figures
By Chris Wheal
June 17, 2024
Office completions back on the rise.
The latest BNP Paribas Real Estate Ireland Construction Total Activity Index posted good news dominated by new office work, with office completions in Dublin in Q1 worth more than total completions in 2023.
Based on data collected between 10 and 30 May 2024, the survey found that overall construction growth paused in May but new orders and employment continued to rise. Housing and commercial were growth sectors.
High office
John McCartney, director and head of research at BNP Paribas Real Estate Ireland, said: “On the commercial side, activity has been driven by office construction in Dublin, where more space was delivered in Q1 than in the whole of 2023.
He added: “Forward-looking indicators on the dashboard are now uniformly pointing in the direction of continued expansion. Order books have been replenished over the spring months, and materials purchases and employment are up as a result.
“Supporting these trends, input costs inflation has stabilised and supply chain issues appear to be easing, with lead times shortening.”
A return to growth
Confidence was up too. McCartney said: “Reflecting these dynamics, nearly 90% of building firms now expect to be as busy or busier in one year’s time, compared with 81% nine months ago.” The report said one third of firms had predicted growth.
Commercial activity rose for the third month running, according to the report, but at less severely than in April. It blamed the overall fall on the decline in civil engineering.
Sub-contractor usage increased for the first time in seven months during May. Sub-contractor availability continued to fall, but marginally, and sub-contractor price increases also slowed.
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