Skills shortages in the construction industry helped drive up the cost of building in Dublin at the fifth fastest rate in the world, a new report has found.
The survey from construction consultancy Turner & Townsend found that building costs in Dublin rose 6pc in 2015. That was the fifth-fastest rate out of 38 regions surveyed by the firm, and was ahead of the likes of London, New York, San Francisco and Hong Kong.
The report now categorises the Dublin market as "hot" alongside Kuala Lumpur, London and San Francisco. It's just one notch off "over heating".
While the property market has recovered sharply in Dublin in recent months, the survey finds the skills shortage is so acute now that it accounts for a large proportion of the increase in costs.
"Demand for construction activity continues to rise, with the increase in work hampered only by skills shortages, particularly related to specialist sub contractors such as glazing and curtain walling," it said.
"Investment in infrastructure is patchy due to the government's caution about debt levels.
"Industrial and manufacturing has increased year on year but it is commercial, retail and data centre activity that is driving growth. There are signs of a gradual recovery in the residential sector, which has been held back due to planning and buyer lending restrictions making many schemes uneconomically viable," the report adds.
The survey notes the effect of the housing crisis and the knock on effect it is having on the rental market as well.
The Turner & Townsend survey is important as it is distributed to clients and property professionals around the world. The firm thinks construction prices are set to increase by 6pc and the industry will continue to face resourcing challenges.