US government to spend $700m building new embassy in Dublin

The front door to the US Embassy in Dublin. The new embassy is not set to be completed for several years and it is unclear when the hotel will be knocked. Picture: Leah Farrell/RollingNews.ie

The US government has reportedly struck a deal with property developer Joe O'Reilly's Chartered Lands to build a new embassy in Ballsbridge Dublin.

Around $700m (€638m) is expected to be spent on demolishing the Jury’s Hotel in Ballsbridge where the new embassy is set to be built, according to reports.

The US department of State notified Congress of their intent to purchase land in Dublin for a “New Embassy Compound” according to a source.

This agreement has been long-awaited in the commercial property sector in Dublin. In 2021, the US government was preparing to buy the hotel, pending rezoning for office use, to house its embassy here, according to an Irish Times report.

The current base for the US Embassy is in the same area as the Jury’s Hotel but the State Department said it “is well beyond its useful life, is too small for our operational needs, and is not functional in its layout,” according to a report by the Associated Press.

The new embassy is not set to be completed for several years and it is unclear when the hotel will be knocked. 

Declining commercial property investments in general have weighed on the construction industry which suffered contraction in November.

The recent BNPRE construction purchasing managers index, a leading industry survey, showed rising interest rates and construction costs have made developers more cautious, therefore the 2024 pipeline is weaker and early-stage activity is being impacted.