The rise in building costs in the capital are also set to outstrip many other major cities...
Dublin has been named the world's eighth most expensive city for construction activity, in Turner & Townsend's latest annual International Construction Market Survey.
Construction in the Irish capital costs $2,606 (€2,374) per square metre. New York topped the list ($3,807 per sq m) with the tech-rich San Francisco just behind ($3,549 per sq m).
Dublin ranked fifth in Europe. Zurich is by far the most expensive ($3,528 per sq m), with London taking second place ($3,213.99 per sq m).
Mark Kelly, Turner & Townsend’s managing director in Ireland, told the Irish Independent that the “intense pressure on the Irish market, where high demand for resources and labour in the context of a growing skills shortage is leading to major price inflation in the capital.”
"Growth is being driven in particular by commercial construction as well as the health and education sector – which is seeing major investment,” Kelly continued.
“By comparison, the residential market remains weak in the context of a severe lack of new building over the last eight years.”
Margins in the capital of 5% are close to the global average but less than the likes of London and New York. Moscow has the highest European margins (8%), whilst Northern Ireland has the lowest at 3%.
The costs are only going up, according to the survey’s short-term forecasts. They are set to rise 8% in Dublin this year, way beyond the global increase forecast of 3.5%.
The capital is named as one of seven ‘hot’ markets where high inflation can be expected in 2017. It places behind only Istanbul in Europe, where costs are set to grow by 12% this year.