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TDublin Amongst World’s
Costliest Construction Cities-but
Project 2040 still on Track
Dublin is now the seventh most expensive place in the world to build and Brexit uncertainty will not prevent costs rising 7% this year, a recent report on international cities has found.
he international construction significant competition on wages and “We are doing a number of projects market survey by global inflating construction costs further.” in Cork and some on the way in professional services company Construction in the North Galway, and we would notice a Turner & Townsend said “remained cold” in comparison to the difference. A lot of inflation is due to
NEWS National Development Plan
Dublin is the third most expensive city Republic, said the report, with supply and demand. It’s not one size in Europe for construction costs, inflation at 0.5% in 2018 and fits all. Infrastructure projects are behind only London and Zurich. predicted to rise 1.5% this year. The very different in terms of their
The report, which studied average cost of construction in the constituent parts and where you are construction costs for both North is €2,032 per square metre, experiencing the most in terms of commercial and residential projects said Turner & Townsend. The average tender inflation.”
in 64 markets, said 7% cost price wage per hour in the North is much Chief economist for the Republic at inflation in Dublin over the next 12 less than Dublin at €25. Ulster Bank, Simon Barry said various months would outstrip the global Zurich is the most expensive in the projects already decided in Project average of 4.1%. The average cost of world for labour, with workers paid Ireland 2040 would have had to factor construction in Dublin now stands at almost €98 an hour. in inflation, but cautioned any future
€2,880 per square metre, Turner & Townsend said. Labour costs have risen 5% in the past year to stand at €35.70 per hour, according to the report.
Despite the rise in costs in Dublin, it should not have a major bearing on the €116bn national infrastructure plan, known as Project Ireland 2040, with the Government likely making provision for inflation in the costs, said construction consultancy firm Mitchell McDermott.
plans would have to be subject to rigorous cost-benefit analysis.
San Francisco has overtaken New York as the most expensive city worldwide in which to build.
“Firstly, the decision to go ahead with any project should only be made after all of the costs are evaluated and identified, and if the benefits exceed the cost,” said Mr Barry
Mark Kelly, Irish managing director at Turner & Townsend, said: “With demand relatively high across the continent, and investment only likely to continue this upward march, the shortage of skilled labour and supply chain capacity in Europe is becoming increasingly problematic, driving
Director Paul Mitchell said:
“That needs to be made on accurate, up-to-date, best information available. It does bring extra focus and vigilance to ensure projects are checked to ensure costing is consistent with that. A refresh may be required, or where an analysis needs to be completed, it has to use the best information.”
The Society of Chartered Surveyors report each year has inflation running at around 7% and analysis on our own basket of projects came up with 6%-7%.
"It varies on what you are building and where you are building it.
HTransformation of Cork an
Example of the Potential of
Project Ireland 2040
The Minister for finance, Paschal Donohoe TD, has praised “the transformation of Cork’s Docklands” and said Cork is competing for investment at a global level.
e made the comments during represents an overall investment of other progressive locations around a recent visit to the 250,000 €125m for Cork city. the world,” said Mr Donohoe.
sq ft Penrose Dock office “We have seen how this type of “With the integration of public development, which is development and regeneration of city transport, large employment hubs,
currently under construction and centre sites have worked very well in and ultimately high-density
Council Journal 19