Construction sector under Celtic Tiger levels of pressure, report says

Ireland's construction sector is facing 'Celtic Tiger' levels of pressure and is in danger of overheating.

A new report from consultancy group Mitchell McDermott is warning demand in urban areas is outstripping our supply chain, leading to "unsustainable" levels of inflation.

It says output grew by 12% last year, but the number of construction workers only increased by 4%.

Paul Mitchell from Mitchell McDermott said there are already signs of overheating in the market.

"We're seeing that the contractors are having their pick of work, which is leading to increased tender inflation," he said.

"We have priced the same office block each year, and if you take that office block in 2015 costing €20m, at the beginning of 2020 it will cost €25m.

"These levels are just not sustainable, and we have to do something to increase labour supply."