Building costs. Jan 2023

That link must be wrong as it’s from 2010.

agree with you that they will eventually move into small scale when a slow down happens. It will be post Celtic tiger all over again. Hopefully home owners will be smart enough to go with professional companies who have experience in small residential works and not just bite at the lowest price but wishful thinking I know.

Contacted 5 builders in Jan via tender and got 1 quote so did not proceed. Running tender again as of last week and all 7 builders contacted pre publication advised they would quote.

Only have price from Jan which was high. Hopefully prices for latest tender come in over next 2-3 weeks.

What I am finding is that the architect spec'ed the work to the highest standard using the best materials. I expect when I discuss pricing with a builder we will reduce some of the items such as less expensive sliding doors, remove external insulation for internal insulation etc. Only when these discussions are complete will I know the true cost of the work.

why would you replace external insulation with internal, makes no sense

architect specced external, are you going to go against that? for what reason? cost? what was the point of the architect so, builder should have no input into the spec, they will only want to build the way they are used to building not which way is best

Didn't get into sq.m cost as with only 1 quote I was going to wait. It is a retro fit with extension and attic conversion.

I had a quote last year but couldn't build due to personal reasons. I contacted the builder recently and I'd say he doesn't want the work as he told me the quote is gone up 25k! Being single and interest rates that rules me out unless I don't want to eat for the next 20 years.

Thanks WacoKid,

If you read between the lines the fact the builders are now quoting when they weren't 6 months ago in January shows that the interest rates hikes etc are having an affect on supply despite the usual line for every builder I meet lately that they have plenty of work on and don't need my business. Wacokid hopefully you get a price you are happy with and can proceed but I expect some builders are still quoting high and will continue while people accept. Each yes just pushes the problem down the road for a builder for another 6 months or so..

You would hope with competition there will be a reduction in costs but only time will tell..

I'm at pre-planning stage and there is a number of builders sites around me (south county Dublin) that I have had chats with regularly. I have initial plans completed and a few of them have offered to cost it for me before planning so will be interesting to see what they come back with.

Material prices are still rising especially timber. Rates due to rise again with the unions getting pay rise agreements for workers, so don’t expect it to get cheaper any time soon.

current rate are circa 3-3.5k a sq metre for extensions and 1-1.5k for retrofit so that would be

100-150k for retrofit assuming 100 sq metres

90-105k for the extension...

so you are looking at circa 250K in todays market..

I don't see labour costs dropping as we may be struggling bring in cheaper labour due to the cost and shortage of housing. Therefore, the demand on the existing pool may only get higher as folk may be happy to access credit easily available to them (re-mortgage, credit unions etc.). Once costs drop to a certain point there may be many waiting to jump in at this point. If this happens prices go up, and around we go again...supply and demand!

Thanks, not sure this is your view or is based on data. A significant proportion of demand may come from this demographic but there may also be homeowners who have cleared, or are at an advanced stage in their mortgages, where the interest rate hikes are not so much a contributing factor to making a decision on to renovate/extend their homes.

Honestly I don't know but I have been tendering for work since Jan and I have to still chase builders even for a quote. None are queueing up at my front door for what is a big piece of work (renovate, attic, extend).

You’ve been claiming it’s coming down since this thread started .Eventually you’ll be right because at some stage prices will come down but not yet.Real world prices for small scale residential works carried out by home owners are not coming down yet.

Construction PMI and construction outputs do not accurately reflect small scale residential works which is the type of work most users on this forum will be involved with.

Again I’m speaking from real world day to day dealings with home owners not massaged figures or generalised figures for the whole industry.Put an extension out to tender and see how many response you get .You’re also assuming all home owners borrow money for extensions.Majority of under €100k extensions the company I work for complete are paid for with no financing.Good quality contractors working in the direct to home owners sector do not need to reduce their prices yet and most will have at least 6 months work ahead of them.

Yes, it’s a sellers market at the moment .It will change no doubt but I can’t see it happening with the next 18 months.

"PMIs and Outputs are from the real world they are both in contraction. Its not anecdotal."

I have to say Fliball123 if anything you are consistent and stand by the figures month in month out. I for one wont argue with you on the figures as we all knows stats are gospel, but like others on this forum its not what I am seeing day to day.

I like others am struggling to get a builder to quote for work, full retro and front and back extension. I moved into an area in South Dublin and 4 houses are getting work completed all within 200m of my current house. I have spoken to all 4 builders and only 1 has looked at the job and his next available date is just over a year away Nov 2024. So not sign of demand dropping in South County Dublin at least..

Well the figures come in monthly and if you average over the year construction outputs are down 4.7% from 2021 to 2022 and another 2% from 2022 to 2023 and the PMI has been in contraction for 10 out of the last 12 months. These are the figures/stats coming in from the real world there may be hot spots like South Dublin that are not seeing it yet.

Yeah outside Dublin alright. I'll pay whatever way I'm asked to. In my accounts it will say who the money went to and it's up to them to deal with their own affairs after that