The health sector stands out as one of the most promising sectors for businesses looking to pick up up new work in the Irish construction market.
Buoyed up by a significant boost to capital spending by the Irish government’s Healthcare Service Executive (HSE), the sector offers a strong pipeline of new projects and the prospect of rising activity over coming years.
The recently-published CIS Construction Industry Forecast for the Republic and Northern Ireland 2026-28 predicts that the value of underlying (under €100 million) health sector starts will rise by 14% this year, followed by growth of 10% next year and a further 17% in 2028.
Record budget
To meet growing demand for healthcare from a population that is both growing and ageing, the Irish government has recently unveiled a record budget for the health sector worth €27.4 billion this year.
Meanwhile, the 2026 capital budget for buildings and equipment for the HSE is set to rise significantly to €1.3 billion as it acts to boost capacity and improve regional access to services.
Major hospital projects provide some good opportunities for new work in the health sector. At the HSE’s €2.62 billion flagship National Maternity Hospital at St Vincent’s campus in Dublin, a preferred bidder, John Sisk, has been appointed and enabling works are underway for what will be a huge new development. Work on the scheme, involving a 10.5ha site and a floorspace of almost 54,000 sqm, is set to run until 2030 (View project).
As St Vincent’s progresses, the HSE will be keen to avoid the problems with delays and labour & material cost-overruns which have plagued the other major landmark healthcare scheme underway in the sector, the €2.26 billion New Children’s Hospital in Dublin. Having been under construction since 2018, the building – which involves some 6,150 rooms- is due for completion later this year (View project).
Underlining the need for strong cost controls in the sector, a recent report from KPMG* on high-profile healthcare schemes in Ireland, noted that: “These projects highlight the importance of robust mega-project governance, enhanced commercial capability in the public sector, and the use of real‑time programme controls…”
Projects in the pipeline
Major hospital projects in the pipeline in other Irish cities also offer opportunities for new work. At University Hospital Limerick, work is set to start this autumn on a €110 million project involving a 96-bed ward expansion. The scheme, to create over 10,500 sq m of space, is set to run for 38 months (View project).
The Irish government’s drive to increase capacity for acute healthcare is also generating new work prospects. Tenders are being invited for a €600 million design team services framework for Acute Healthcare Capital Works in the Munster region The scheme involves the construction of a purpose-built facility for cancer treatment for patients in Limerick, Clare and North Tipperary (View project).
Work is also due to start in the city later this year on a €57 million, five-storey extension to the Paediatric Inpatient Accommodation at Cork University Hospital (View project).
Meanwhile some significant independent health sector construction projects are also due to get underway. Plans have recently been submitted for a €146 million extension to Blackrock Private Hospital on a 1.1 hectare site in Dublin’s Rock Road. Work on the scheme, which will involve almost 32,000 sq m of space, could start early next year (View project).
The health sector also offers opportunities for work on smaller and medium sized construction projects. Detailed plans have been granted and work is set to start later this autumn on the €6.3 million Corduff Primary Care Centre Extension in Dublin. Work on the scheme of over 2,000 sq m of floorspace, is due to run over 16 months (View product).
