Uncertainty over construction projects is driving Ireland’s expertise to Europe and the UK instead, harming the State’s efforts to build up the domestic industry, a quantity surveying firm has said.
Buildcost, which has offices in Dublin and Letterkenny, Co Donegal, and works on projects nationwide, said Tuesday’s budget would be key to government efforts to ramp up homebuilding urgently before the housing crisis deepened.
The number of homeless people in the State climbed to a record in August, standing at more than 16,300, including more than 5,100 children.
Building up Ireland’s construction force is considered key to tackling the problem. There are about 170,000 workers in the construction industry, down from 237,000 at the height of the Celtic Tiger period.
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The Government has set a target of building 303,000 homes between 2025 and 2030, when its term in office is due to end. The revised targets would mean delivering an average of 50,500 homes a year.
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However, Buildcost director Jason Tully said the sector faced rising costs, labour shortages, planning delays and “high-risk conditions” for contractors and developers.
“We observe daily barriers to efficient project delivery, from escalating costs to fragmented procurement,” he said.
“While policy intent has improved with the likes of Housing for All, the National Development Plan and apartment design standards, implementation lags due to industry constraints.”
Housing completions last year were about 32,700, while the Economic and Social Research Institute (ESRI) is forecasting 35,000 completions this year and 36,000 in 2026.
“Industry reports and stakeholder briefings highlight that delays in delivering the required infrastructure and utility connections are now primary bottlenecks,” Mr Tully said. “Acute labour shortages persist, especially in trade and retrofit skills.”
He said the Government’s procurement system, E-Tenders, has “never been quieter” in terms of projects.
Among the group’s key recommendations for Budget 2026 is an acceleration in capital funding for local authorities and approved housing bodies as well as the streamlining of drawdown and approvals.
It wants the Government to introduce VAT rebates or reductions on housing and apartment developments to improve viability. “This can be linked to delivery within certain time frames,” Mr Tully said.
The group is also calling for development levies for affordable and cost-rental schemes to be waived nationally.
It cited the Croí Cónaithe scheme and urged greater support for brownfield regeneration with “less red tape and improved timelines”.
The group said planning approvals should be streamlined through statutory time frames and digitalisation.
“Construction is not just an economic driver, it is the foundation of Ireland’s social progress. Without urgent, targeted intervention, we risk deepening the housing crisis and stalling regional development,” Mr Tully said.
“Budget 2026 presents a critical opportunity to back shovel-ready investment while enabling the sector to build smarter, greener and faster.
“We urge the Government to consider these recommendations to stimulate delivery, reduce systemic delays and risk and to ensure value for money, not just for the Exchequer, but for society at large.”
On infrastructure, the group called for funding for “shovel-ready” public transport, roads, water and energy projects to be made available up front and for funding for infrastructure to unlock zoned residential land to be ring-fenced.
“Construction inflation has eased to 3 per cent, its lowest level in years, creating a cost window that the Government should seize for accelerating infrastructure delivery,” Mr Tully said.
“This environment offers better value for money and reduces risk for public procurement.”
The group said apprenticeships in construction trades should be expanded with targeted grants and employer supports while training in modern methods of construction should also be a focus.
