Employment levels in Dublin reached a new peak of 835,400 (SA) residents employed in Q1 2025, as the county’s unemployment rate fell to 4.3% (SA).
Retail spending by consumers in Dublin remained broadly stable in the first quarter of the year, increasing by a modest 0.2% QoQ.
Dublin saw an uptick in business activity in Q1 2025, though the pace of growth eased, as reflected in slower Purchasing Managers’ Index readings across the manufacturing, construction, and services sectors.
Housing commencements fell to their lowest ebb since pandemicera 2021, declining 60% QoQ to 1,037.
Passenger journeys on Dublin’s public transport network declined by 2.9% QoQ to 69.9 million trips (SA), but did increase by 4.8% YoY.
Hotel occupancy rates in Dublin were robust in the first four months of 2025, climbing YoY in each month since January to 86.9% in April.
Welcome to the June 2025 issue of the Dublin Economic Monitor
The Dublin Economic Monitor is a joint initiative on behalf of the four Dublin Local Authorities, and is designed to be of interest to those living and doing business in Dublin or considering locating here. The report is produced by Grant Thornton with inputs from various contributors throughout. There are two special feature articles this quarter. The first is from Mark O’Connell, Founder and Chair of OCO Global, and focuses on FDI and the changing landscape for investor attraction. The second article, by Jamie Cudden, Executive Manager of Corporate Services and Transformation in Dublin City Council and Lorcan Blake, Economic Advisory Director in Grant Thornton, celebrates the 10th anniversary of the Dublin Economic Monitor and concentrates on the changing landscape of the Capital over the last 10 years.
The Monitor is divided into the following themes for Dublin: Economy Business Developments
Retail Hospitality Labour Market International Rankings Housing Transport & Travel
For more data and insights see: www.dublineconomy.ie
The next edition will be published in September 2025.
www.dublineconomy.ie
@DCCEconDev
Dún Laoghaire Rathdown County Council
Big, disruptive global forces… again.
“Just when I thought I was out, they pull me back in.” Al Pacino’s iconic line in The Godfather: Part III could just as easily reference the Irish economy and the big, disruptive global forces we seem to face on a permanent basis. The World Uncertainty Index, in which the word ‘uncertain’ is counted in the Economist Intelligence Unit country reports, bears this out, setting new high points and trending ever higher. Current uncertainty sets a new peak, and this reading was produced just ahead of President Trump’s ‘Liberation Day’ tariffs announcement.
The World Uncertainty Index
SOURCE: HTTPS://WORLDUNCERTAINTYINDEX.COM/
For Dublin, and for Ireland more broadly, this new mix of economic fundamentals and political turbulence means the economy is in a renewed phase that requires careful navigation.
The good news is that we’re still growing. The Central Bank expects Modified Domestic Demand to rise by around 2.7% this year, with other major institutions landing in a similar zone. The European Commission forecasts GDP growth of 3.4%, while the IMF is a bit more cautious at 2.3%. Growth is clearly softening compared to the post-pandemic rebound, but the direction is still positive.
The domestic picture supports that. Unemployment remains low — around 4% — and job creation continues, albeit at a slower pace. Migration is helping to fill gaps in key sectors like healthcare and ICT, though there’s still a mismatch between available skills and job requirements in many areas.
Inflation is also back within more manageable territory, with the Central Bank expecting it to average about 2.2% this year. However, cost pressures haven’t disappeared. Housing continues to dominate concerns — both in terms of affordability and supply. Rents and house prices are moving up again, and this is increasingly shaping decisions around investment, hiring, and longterm planning for both individuals and firms. A report
by Daft.ie notes that rents are now climbing faster than at any point over the past 20 years.
But it is the global picture that’s now front and centre. President Trump, in his second term, has doubled down on economic nationalism. His recent “Liberation Day” announcement marked a sweeping policy shift — a blanket 10% tariff on all US imports, with additional penalties for countries running surpluses with the US. That move, framed as a national security measure, has already rattled global markets and brought trade policy firmly back onto the risk radar.
For Ireland, this is more than background noise. The US is our single largest trading partner and a major source of inward investment. Key Irish exports — pharmaceuticals, medical devices, ICT — are tightly connected to US supply chains and consumer markets. A protectionist pivot in Washington carries real implications for Irish exporters and the broader investment climate.
There’s also concern about Trump’s signals on corporate tax. If the US moves to roll back parts of the OECD’s global tax agreement — as has been hinted — it could trigger renewed volatility in multinational investment strategies. Given how concentrated Ireland’s tax revenues are, particularly from a small group of large tech and pharma firms, this is not a risk to take lightly.
The European Commission has already flagged Ireland’s exposure to the US as a structural vulnerability. While some diversification has taken place post-Brexit, our export profile remains relatively narrow — sectorally and geographically. That makes us agile in good times, but more exposed when policy shifts are sudden and sharp.
Still, we do have some buffers. The public finances are in surplus, and the government continues to add to its rainy day reserves. That is a good position to be in, especially if fiscal supports need to be mobilised quickly in response to trade disruption.
So where does this leave us? In reasonably good shape — but with more headwinds to watch. The economy is still expanding. Jobs are still being created. But the external threats are louder and more unpredictable than they have been in years. If we are heading into a period of global fragmentation, it is crucial that the domestic economy doubles down on competitiveness factors within our control such as housing, skills, productivity, and build a more resilient, adaptable economy for the years ahead.
The coming months won’t be without challenges. But our economy has shown before that it can absorb shocks and come out stronger.
Business Developments
Commercial Property Market Shows Initial Signs of Revival
While the Dublin labour market remains in rude health with full employment, undulations continue and uncertainty is rising. Recent months have seen several positive movements, headed by Go Ahead Ireland which announced plans for a new bus depot with a capacity for 187 buses and employing up to 450 people in Ballycoolin, Dublin 15. Subject to planning, the depot would provide new roles for bus drivers, mechanics, maintenance staff and ancillary personnel.
Sony Interactive Entertainment has also announced plans to open a Dublin office, creating 100 jobs in digital operations, customer and employee servicing, and external operations. Paul Walsh, senior vice-president at the company, said that “establishing a presence in Dublin allows Sony Interactive Entertainment access to top-tier talent in digital innovation and technologies”.
In contrast to such positive news, March saw the closure of Thunders Bakery, a Dublin institution which had 8 outlets across the Capital. The company cited difficult trading conditions for its closure after 56 years in operation. As of its latest accounts, Thunders employed 66 people. ESW, formerly eShopWorld, also announced job cuts in early 2025. The company which is headquartered in Swords announced that up to 45 roles are at risk of redundancy due an investment in technology which automated certain processes.
Outdoor Events Season
The American National Football League (NFL) is staging its first ever regular season match in Dublin this September. The contest will feature the Pittsburgh Steelers and a yet-to-be-announced opponent, and the Irish Government expects 30,000 international visitors to visit the Capital. This will add an estimated €64 million boost in economic activity and generate significant tax returns to the Exchequer. The Croke Park match will bookend a busy summer period for outdoor events in Dublin, including Longitude Festival (Marlay Park), Mumford & Sons (Malahide Castle), Dua Lipa, the British & Irish Lions, the College Football Classic (all Aviva Stadium), Oasis, and the Hurling and Gaelic Football All-Ireland Finals (all Croke Park).
The Croke Park match will bookend a busy summer period for outdoor events in Dublin, including Longitude Festival, Mumford & Sons, Dua Lipa, the British & Irish Lions, the College Football Classic, Oasis, and the Hurling and Gaelic Football All-Ireland Finals.
Commercial Property Revival
The Dublin commercial property market has shown further signs of revival. According to CBRE, take-up in Q1 doubled YoY, with EY’s leasing of additional space at Three Wilton Park the largest deal of the quarter. Workday also completed the letting of 38,660 sq m at College Square in Q2 which is a significant development. While vacancy rates – shown in the chart – remain high, several entities including State Street and the Land Development Agency are seeking office space in the Capital. CBRE stated that while Dublin was seen across Europe as a commercial market “in distress” in early 2024, over the space of 12 months sentiment changed for the prime segment of the market due to “some big technology lettings, strong take-up of modern stock, reducing vacancy in the core city centre, and the office development pipeline slowing substantially (now with little speculative stock under construction)”.
Cautious Business Outlook Amid US Trade Policy Concerns
The Dublin private sector made a positive start to 2025, with business activity rising on the back of higher new orders. There was good news for the labour market as well, with the pace of job creation picking up. One slight area of concern was a reduction in manufacturing output which limited the overall pace of growth.
Business activity in Dublin’s private sector increased in the first quarter of 2025, albeit at a softer rate than in Q4 2024. The headline Purchasing Managers’ Index (PMI) rate stood at 52.6, down from 54.7 in the previous quarter, yet above the 50 mark which denotes expansion. This was broadly aligned with the rate of growth for the Rest of Ireland in the quarter (52.4). Uncertainty around the implementation of US tariffs will likely weigh on business activity in the coming quarters as businesses in the region contend with the prospect of expanding trade restrictions.
All three sectors that make up the PMI slowed in Dublin in Q1. The Manufacturing sector (48.9) experienced a contraction in activity for the first time in three quarters. Both the Construction (57.8) and Services (53.4) sectors recorded expanded activity but at slower respective rates than seen in Q4 2024. The Rest of Ireland saw increases in activity in both the Manufacturing (52.2) and Services (55.6) sectors but a decline in Construction (48.8) in the quarter – the latter of which was in notable contrast to Dublin.
New orders (52.0) continued to rise in Dublin in Q1, extending the current sequence of growth to five successive quarters. However, the rate of expansion declined to its joint-slowest of the past year, resulting in only a modestly positive reading. The Rest of Ireland (52.7) saw a swifter expansion in such new business activity.
The pace of job creation in Dublin (51.2) increased QoQ in Q1 as companies continued to take on extra staff. However, the expansion was marginal and the rate of new employment decreased YoY from the 53.9 level seen in Q1 2024. The Rest of Ireland (51.4) posted a broadly similar rate of job creation to that seen in Dublin in the quarter.
RETAIL
Dublin retail spending stable in Q1 2025
MasterCard Total Retail Sales Index (SA)
Retail spending by consumers in Dublin remained broadly stable in the first quarter of the year. A modest 0.2% QoQ (all values SA) increase was recorded in Q1. This continued a sequence of four quarters in which growth has been relatively weak, and may be a reflection of the ongoing cost of living challenges for many households. While the era of high inflation has largely passed, prices in many sectors have remained elevated – meaning spending power amongst consumers in the Capital remains subdued.
Despite this, the modest growth in Q1 brought the Dublin retail spending index to 145.6 on the index (2015 = 100) which is the highest point the series has reached. This represented a YoY expansion of 1%.
Notably, spending on Necessities such as groceries
was the main driver of growth in Q1. Expenditure in this category rose by 1.8% QoQ and this may reflect the cost of living challenge as essentials were prioritised and other categories of the retail sector were markedly subdued.
Discretionary spending in the likes of department stores – which benefits from disposable incomes –contracted by 1.4% QoQ in the quarter. The value of spending in the Household Goods and Entertainment categories (both +0.2% QoQ) also remained stable in the quarter.
eCommerce spending, via platforms such as the newly launched Amazon.ie, was flat (-0.1% QoQ) in Q1.
METHODOLOGY
Tourism spending weakens as US market faces challenges
Retail spending by tourists in Dublin and nationally also weakened in Q1 – in line with contracting visitor numbers according to the CSO. Expenditure by visitors to the Capital reduced by 0.1% QoQ in Q1.
The primary influence was the US market which saw a reduction of 3.5% in consumer spending in the quarter. This outcome, which is concerning ahead of the summer season, may be an initial sign of the domestic challenges in the American economy where unprecedented economic policies are affecting many households. The decline recorded in Q1 followed a reduction of 4.5% QoQ in Q4 2024, thus further compounding the impact in this segment. A rebound will be important for the Capital’s economy from Q2 onwards given the centrality of US tourist spending for many businesses.
Total Irish Household Deposits, March 2020-March 2025 (billions)
While only representing a small portion of total retail expenditure, Chinese tourist spending fell by 22.5% QoQ – yet this segment is susceptible to undulations given the relatively small volumes of tourists which originate from this market.
Closer to home, spending by German fell by 1.3% QoQ, but this was somewhat counter-balanced by an expansion of 0.5% from the French market and relative stability amongst visitors from the UK (-0.1% QoQ). Ongoing resilience amongst such European markets will be essential – especially for weekend visitors to Dublin, and in the face of potential challenges in the US tourism market.
Budget Impact
In response to the declining rates of inflation seen across the Eurozone in recent quarters, the European Central Bank has continued to cut interest rates. The deposit facility rate now stands at 2.25%. This is the lowest since early 2023 and will be expected to stimulate consumer spending across the bloc. Further cuts are expected across the remainder of 2025. While this would ordinarily spur reductions in savings rates, the Irish context is less straightforward. The Covid-19 pandemic significantly altered Irish savings habits, and weak interest rates have done little to deter further saving. Indeed, as shown in the chart, Irish household deposits have now reached record levels of over €162 billion. Such an ongoing willingness to save indicates that falling interest rates may not bear the full economic benefits for sectors such as retail in the coming quarters.
HOSPITALITY
Hotel occupancy rates rise through April 2025
Dublin Hotel Supply & Occupancy Rates
SOURCE: STR GLOBAL.
Hotel occupancy rates in Dublin were robust in the first four months of 2025. While reported visitor numbers to Ireland have been declining, occupancy rates in the Capital have climbed YoY in each month since January. The rate increased by 2 percentage points to 86.9% (nonSA) in April. This was the strongest April performance since the series began in 2015, and may be partially related to a modest reduction of 1.2% YoY (non-SA) in Average Daily Rates. The hospitality sector in Dublin faces challenges, however, potential downturns in the US and global economies could have significant ongoing impacts on the volume of international tourists visiting Ireland.
Restaurant
bookings taper following a strong
Easter period
Seated Diners at Dublin Restaurants (% Change Relative to 2019)
Dublin’s restaurant sector saw a dip in seated diners in early summer, following a surge of activity during the Easter period. The volume of seated diners at restaurants in the Capital stood 21% above the 2019 baseline on the third Saturday of May. This followed a strong Easter period which saw the number of diners rise 143% above the 2019 baseline. Nationally, the performance of the sector remains stronger, with the number of seated diners up by a considerably stronger degree (+85.8%) in May. Pressure continues to mount for the sector amid rising costs and shrinking margins.
The FDI Hustle: What Dublin Must Do Next
Mark O’Connell Founder and Chair, OCO Global
Dublin has long punched above its weight in the global race for foreign direct investment (FDI). With its EU access, English-speaking talent pool, and strong track record in tech and life sciences, it remains a beacon for global investors. But the game is changing. In The Great FDI Hustle, I argue that the traditional model of FDI attraction—based on tax incentives, glossy marketing, and passive promotion—is dead. Cities like Dublin need to adopt a more agile, investor-centric playbook.
The first lesson is clear: stop selling, start listening Too many investment agencies still broadcast outdated messages rather than tuning into what investors actually need. Successful cities now focus on demand-led strategies—building propositions around specific investor problems, not abstract assets. Dublin must become more surgical in how it targets sectors, geographies, and investor types. Generic messaging no longer cuts it in a world of precision targeting. As Andy Burnham Mayor of Manchester explained when asked to comment on the resurgence of his city, “we don’t promote projects, we promote the place”. This is a very different mindset and not about another single occupier shiny building, but a broader inclusive strategy that works for all constituents.
Second, aftercare is the new frontier. Winning new investment gets headlines; keeping and growing it wins the long game. Investors value responsiveness, continuity, and problem-solving. Dublin should double down on account management—supporting existing FDI companies to scale, innovate, and integrate locally. Helping an investor solve a skills gap or navigate planning bureaucracy can yield more impact than landing a flashy new deal. The need for this approach is acute in the current febrile geopolitical atmosphere, and Dublin’s recent FDI campaign which celebrates the contribution
Dublin has long punched above its weight in the global race for foreign direct investment (FDI). With its EU access, Englishspeaking talent pool, and strong track record in tech and life sciences, it remains a beacon for global investors.
of existing investors is right on the money.
Third, the ESG revolution is reshaping investment criteria. Investors want more than profit—they want purpose. Dublin must lead with values, showcasing its green credentials, inclusivity, and governance standards. Projects with strong sustainability angles—such as in green finance, circular economy or cleantech—will resonate more deeply than cost-led pitches.
Fourth, regionalism matters. Investors are no longer buying "Ireland Inc." They’re buying Dublin, Cork, Limerick—distinct propositions with unique talent, infrastructure, and ecosystems. Dublin should assert its individuality within the national brand, highlighting its innovation clusters, connected universities, and urban dynamism. But it must also collaborate—offering investors clear pathways to scale beyond the city limits.
Lastly, be ready to pivot. The FDI landscape is being redrawn by geopolitics, AI, and deglobalisation. Success will go to places that can adapt. That means constantly refreshing Dublin’s sector focus, refreshing its talent strategies, and being willing to challenge legacy thinking.
FDI remains one of the most effective tools to grow jobs, innovation and exports. But it’s not a right—it’s a race. Dublin has the fundamentals. What it needs now is sharper execution, bolder positioning, and a relentless focus on the investor journey. The hustle is on.
Unemployment amongst Dublin residents falls to 4.3%
DUBLIN & NATIONAL UNEMPLOYMENT RATE % (SA)
The unemployment rate in Dublin fell to 4.3% (SA) in Q1 2025, in a further positive development for the Capital's labour market. This represented a 0.3 percentage point (pp) decline both QoQ and YoY. Nationally, the unemployment rate edged up to 4.5% (SA) in Q1 2025, a 0.2pp increase QoQ, though it remains within the range considered indicative of ‘full employment’, a trend sustained since Q2 2022. Ireland’s labour market is projected to maintain stability in the coming quarters, though growth is likely to moderate. This is reflected in the number of job postings on the Indeed website which has declined in recent quarters (see page 11).
Dublin employment hits record high in Q1 2025
Employment by Broad Sector '000s (SA)
Employment amongst Dublin residents increased in Q1 2025, reaching a record high. Total employment stood at 835,400 (SA) during the first three months of the year, marking a 2.4% increase QoQ and a 2.6% rise YoY. QoQ growth was largely driven by a 9% increase (+3,400 jobs) in construction employment, aligning with the uptick in activity noted in the PMI survey (see page 5). Private sector employment also expanded strongly, up 4.7% QoQ. Conversely, employment declined QoQ in both the industrial (-7.5%) and public (-1.2%) sectors. Dublin’s labour market is expected to remain resilient, though hiring may become more uneven amid an increasingly uncertain global economic environment.
Dublin job postings on downward trajectory
Job Postings on Indeed (Feb 2020 = 100)
The number of Dublin job vacancies posted on the Indeed website was on a broad downward trajectory in May 2025, following a period of stability. The total number of job postings stood 15 percentage points (pp) below the February 2020 baseline, falling to levels previously recorded in 2021. Nationally, job postings across Ireland also fell to their lowest level since 2021 but remained above the 2020 baseline (+8%). Job postings have declined across most sectors over the past year, with tech roles seeing the steepest drop. In contrast, hiring for public sector and essential service roles, such as healthcare, education, and sanitation, remain high.
FDI value grows despite fewer projects in
Foreign direct investment (FDI) into the Dublin economy increased in Q1 2025 despite the challenging macroeconomic environment. Average capital investment climbed by 3.9% QoQ to $775m in the quarter. YoY growth was more pointed with an increase of 17.9%. In contrast, the average number of FDI projects in Dublin declined from 29 in Q4 to 27 in Q1. Job creation also fell by 17% QoQ to 1,769. Dublin maintains FDI strength per capita ($674) and in average project value ($28.7m) relative to its European counterparts, yet these are undoubtedly exceptionally challenging times for FDI internationally.
Dublin Ranked as Best Small Region in Europe for FDI Attractiveness
Internationally published benchmarks are a useful means of measuring a city’s performance relative to its peers, and recent indicators for Dublin confirm the city’s strong showing across a range of dimensions (see table opposite).
A European Leader in FDI
Dublin has retained its position as the best small region in Europe for FDI attractiveness. The rankings, compiled by fDi Intelligence, placed the Capital as the number one small region for both Economic Potential and Business Friendliness. According to the rankings, “Dublin is renowned for fund management, data centres and global tech companies, and has held onto its reputation as a key player among European cities in attracting multinationals”. It continued that “the city has emerged as a preeminent choice for global tech companies looking at Europe, thanks to its highly educated workforce, established business environment, low corporate tax rate and EU membership”. Other prominent FDI sectors included business services, communications, and financial services, each of which has contributed to the region ranking sixth in Europe for the number of jobs created in the past five years. The Capital attracted 90 FDI projects over the course of 2024, and also rose one place to 2nd in the major cities category which was topped by London.
Strong Start-Up Support Credentials
Three Dublin start-up hubs have ranked amongst the best in Europe, according to a benchmark compiled by the Financial Times and Statista. Dogpatch Labs (score of 81.8, 20th in Europe), Furthr (76.8, 80th), and NovaUCD (74.3, 117th) all placed in the top 150 in
the 2025 rankings. Over 3,000 hubs offering incubator and/or accelerator programmes to founders who want to build or grow a company in Europe were long-listed for the rankings, which were ultimately formed based on alumni and expert views of services and infrastructure provided. UnternehmerTUM in Munich took top position in the rankings, with Start2Group’s office in the city placing 3rd. Station F in Paris was placed second in Europe.
A Global Financial Services Centre
Dublin has retained its position at 14th in the 2025 Global Financial Centres Index. The Capital performed particularly well in terms of its reputation (6th globally), while its investment management sector (6th) and fintech sector (8th) were standouts. This positioned the city in the top three in Europe – behind only London and Frankfurt but ahead of major hubs including Geneva, Luxembourg and Zurich. The rankings specifically outlined how “the competitiveness of a financial centre depends heavily on a well-balanced regulatory environment, low corruption levels, and robust rule of law”, and outlined how “jurisdictions that excel in these areas foster trust, attract global investment, and position themselves as leaders in the financial industry”. Dublin’s 2024-2025 performance highlights a remarkable rise from 2023 when the city was ranked 48th globally, and underlines the strength of the sector in Dublin relative to its international peers.
DUBLIN'S INTERNATIONAL RANKINGS
fDi Small Regions of the Future
fDi European Cities and Regions of the Future
Financial Times & Statista Europe’s Leading Start-up Hubs
DUBLIN'S LATEST INTERNATIONAL RANKINGS
Residential property transactions fluctuate in Q1 2025
Dublin Residential Property Transactions (SA)
Dublin’s residential property market saw fluctuating transaction levels in the first quarter of 2025, following a strong end to 2024. Total transactions in the Capital were down MoM in January (-29%), before rebounding in February (+11.7%) to stand at 1,922 (SA). Transactions were stable in March at 1,907 (SA). A similar pattern was recorded YoY across January (-4.7%), February (+11.8%) and March (-3.6%). Nationally, transaction levels have fallen YoY across the first three months of the year. Ongoing supply challenges and falling interest rates will be key influential factors on market activity in the months ahead.
Dublin residential property prices reach record
high in Q1 2025
Residential Property Price Index (2015 = 100)
Residential property prices in Dublin reached a new peak in January 2025 before falling in March. Prices increased marginally MoM (+0.1%) in January to reach a new peak index reading of 166.9, which was maintained in February. Prices subsequently fell MoM in March to 166.4, the first such decline since May 2023. Prices declined by 0.3% MoM but remained up YoY (+6.1%). Across the rest of Ireland, house prices continued to rise, increasing by 0.3% MoM and by 8.7% YoY in March 2025. Property prices continue to demonstrate stability supported by strong demand and falling interest rates, despite ongoing inflationary pressures and broader economic uncertainty.
Average Dublin residential rents exceed €2,100
Growth in average rents for residential properties in Dublin accelerated in Q3 2024 (latest data available). Data from the RTB shows that the average rent in the Capital exceeded €2,100 for the first time in the quarter. This reflected QoQ and YoY growth of 2.1% and 5.4% respectively. Both rates were stronger than those recorded in the preceding quarter as upward momentum continued. Rents within the Greater Dublin Area (+3.6%) and across the rest of the country (+4.5%) also accelerated QoQ in Q3. Rent Pressure Zones, introduced in 2016 to limit rent increases in specific areas, are currently under review by the Housing Agency and may be subject to change in the coming quarters. Such moves could have significant implications on rents which apply in Dublin and across Ireland in the years ahead.
Housing supply reaches new low in
Q1 2025
Dublin House Commencements & Completions
The pipeline of new housing supply in Dublin continued to fall sharply in Q1 2025. Housing commencements, which reached a peak of over 7,500 in Q2 2024, fell to just over 1,000 in the first quarter of the year. This was the lowest ebb since pandemic-era 2021 and marked a contraction of over 60% QoQ. The reduction is partly explained by waivers on development levies and rebates on water charges which caused the 2024 spike in commencements, but have since expired. Housing completions also fell considerably in Q1 2025. Fewer than 2,000 units (SA) were completed in the quarter. This represented a decline of 44.5% QoQ, and also marked the lowest point since 2021. A significant uplift in completions will be required for the Government to meet its 2025 housing targets.
TRANSPORT & TRAVEL
Public transport usage declines in Q1
Public Transport Million Trips (SA)
Public transport journeys in Dublin fell in Q1 2025. A total of 69.9 million journeys (SA) were undertaken in the quarter. While this reflected robust growth of 4.8% YoY, it was down by 2.9% QoQ. It is not yet clear what caused this decline, yet falling international tourist numbers could be an influential factor. All modes of public transport in Dublin recorded lower passenger numbers in Q1. Luas and Dublin Bus services were most affected with respective reductions of 1.2 million and 470,000 journeys (both SA). A new Dublin Commuter Zone (DCZ) has since been introduced for rail services in Dublin. The DCZ is broken down into Dublin City Zone 1, and Zones 2, 3 and 4, based on the distance from the city centre, and has resulted in changes to fares for commuters across broad swathes of the Greater Dublin Area.
Dublin road traffic eases as summer approaches
Dublin Average Daily Traffic Count '000s (SA)
Average daily traffic volumes in Dublin rose throughout spring 2025, before tapering off in early summer. Road traffic volumes on eight main thoroughfares in the Capital stood at almost 700,000 (SA) journeys in the third week of May, representing a 7.3% decline MoM. Volumes had exceeded 750,000 (SA) in early April, but have since been trending downward. Morning peak traffic fell by 5.5% YoY, with over 2,600 (SA) fewer journeys in May, while evening traffic declined by 3.8% YoY, a reduction of over 1,800 (SA) journeys.
TRANSPORT & TRAVEL
Passenger numbers dip at Dublin Airport in Q1 2025
Dublin Airport Passengers '000s (SA)
Quarterly passenger numbers at Dublin Airport declined in the first three months of 2025. Almost 8.4 million passengers (SA) passed through the airport in Q1, reflecting a decline of 1.4% QoQ or 117,000 passengers. YoY passenger throughput also declined by 2.2%, representing a drop of more than 191,000 travellers. Dublin Airport has highlighted the impact of the passenger cap and the timing of Easter falling later in the year as factors in the downturn. Additionally, the one-day closure of Heathrow Airport in March affected approximately 6,000 passengers on the Dublin–Heathrow route, which is the second busiest in Europe.
Dublin port activity remains stable in face of global uncertainty
Dublin Port Tonnage Million Tonnes (SA)
Trade throughput at Dublin Port in Q1 2025 remained broadly stable despite the challenging and volatile international economic conditions. A total of 8.8 million tonnes of imports and exports (SA) were handled in the quarter, representing modest QoQ (+0.4%) and YoY (-0.3%) undulations. Exports, which are of vital importance to the Dublin and national economies, recorded a stronger first quarter to the year - rising by 2.5% QoQ to 3.3 million tonnes (SA). This was the first such expansion in a year. Imports declined marginally QoQ (-0.8%) in Q1. Overall, total trade activity at the Port has remained in a stable post-Brexit pattern in recent years with approximately 9 million tonnes (SA) handled each quarter - though this may be impacted if the unfolding global trade war escalates further.
Dublin’s Decade of Economic Growth
Jamie Cudden Executive Manager, Corporate Services and Transformation, Dublin City Council
Lorcan Blake Director, Economic Advisory, Grant Thornton
The Dublin Economic Monitor (DEM), now marking its 10 year anniversary, originated with an ambitious vision to be the ‘go to’ and ‘trusted source’ for residents, businesses, policymakers and investors to find the latest indicators and opinion pieces on Dublin’s economy.
A European Leader in FDI
First compiled by DKM Economic Consultants and 256 Media, the DEM was a first-of-its-kind for an Irish city. It was designed to be accessible and visually engaging from the outset – with the challenge set to be ‘one of the best designed economic monitors in
the world!’. The inaugural issue, featuring the iconic Samuel Beckett Bridge on the front cover, provided a snapshot of a Dublin economy in the immediate postGlobal Financial Crisis environment – focussing on the labour market, consumer sentiment, housing, business activity, commercial property, transport and travel. The publication, now in its 41st edition, has since evolved considerably in terms of both content and format; incorporating new datasets on topics from retail spending to FDI and hospitality, and revamped with a fresh design. Its web platform on dublineconomy.ie has been fully re-designed and provides a rich resource of special feature articles, insights and video content which is frequently updated, while its reach has been bolstered by digital advertising campaigns led by Pearl & Dean Ireland.
The DEM ultimately remains a living and evolving initiative. Further advancements in data sets and media forms are in the pipeline and will ensure that it remains the ‘go-to’ and an international leader in monitoring regional economic performance –and is something that Dublin’s local authorities are proud of.
A Decade of Progress
This 10th anniversary issue of the DEM marks an opportune time to reflect on the Capital’s performance
over the past decade.
Since the first issue was published, the global and European economies have experienced seismic and at times unprecedented change. The Covid-19 pandemic, Brexit, war on the European continent, and – most recently – emerging global trade tensions spurred by a second Donald Trump presidential term are particularly notable.
While such macro events have presented challenges to the national economy, Dublin has continued to grow in scale and impact. The Capital’s population now stands at an estimated 1.5 million, marking an increase of more than 220,000 people in 10 years. Diversity has been a hallmark of this growth as almost a fifth of the Capital’s population are now non-Irish citizens, and this has added to the multicultural richness of the city region.
Employment, which is critical on multiple levels to our society and economy, has expanded rapidly from the depths of the Global Financial Crisis. Over 840,000 (non-SA) Dublin residents are now employed, reflecting a historically low unemployment rate of 4.3% (SA). This is due to broad-based economic and population growth, though notable expansions in job creation have occurred in the sectors of ICT (+37,000 jobs), health & social work (+28,000) and education (+24,000) since 2015.
While significant investment is still required, Dublin’s infrastructure network has also evolved over the past decade and will provide a basis for further growth. The new National Children’s Hospital is approaching its opening, Dublin Port has continued its redevelopment works, and Uisce Éireann and EirGrid investments have accelerated. Notable large-scale sites in the Capital have also been developed – including Cherrywood, the Docklands, Clonburris, Grangegorman, and the former Glass Bottle Site in Ringsend. However, housing delivery has been challenged throughout the last decade and has negatively impacted both households and competitiveness.
In transport, the Luas lines have been linked and extended, BusConnects has re-configured bus connectivity, and sustainable transport infrastructure delivery has ramped up – all of which ensures that viable alternatives to the car are available. Dublin Airport has also seen exponential passenger growth, while further plans are afoot for infrastructure improvements in the
county, including in the form of the MetroLink.
The ‘twin transition’ of technological and climate adaptation have also been highly influential. The rise of AI and digitisation, and the imperative to provide opportunities for Dublin’s residents to become equipped with the skills to deal with each are prominent. The need to continue to de-carbonise in the face of the climate emergency is also central – with construction retrofitting and sustainable transport just two examples of significant changes in the Dublin economy since 2015.
Remote working, meanwhile, has in certain respects been one of the most influential economic changes in the past decade. Spurred almost overnight by the pandemic, ‘working from home’ has become a new norm for many workers. This has created downstream effects across multiple sectors in the Capital, most notably in the commercial property market, in transport, and in hospitality where lower footfall in the city has been particularly impactful. Hospitality has been severely affected since 2015 as rising tourism and income levels have been countered by the pandemic-era restrictions and the rise in remote working. Commercial vacancy rates have risen with lower grade offices in particular facing obsolescence and posing challenges for the city. Initiatives are afoot, however, to support the sector –including a renewed focus on the night-time economy and the creation of the Dublin City Taskforce.
The Next Chapter
Looking ahead to the next decade, it is clear that Dublin needs to focus on investment to remain an attractive place to live, work, visit and invest. Housing is to the fore in this regard as significant new home delivery is needed to address excess demand. Utilities investment –especially in energy and water – is essential and requires attention, while ongoing focus on the fundamentals of infrastructure, education and a high quality of life will remain central to the Capital’s future success.
Whatever the future brings for Dublin, you can be guaranteed that the DEM will be there to track performance and provide a unique perspective on the latest developments. We look forward to tracking how the Dublin economy and DEM evolve over the years ahead.
