Clancourt Group, a prominent Irish office developer, expressed concerns to Ireland's Department of Finance regarding the challenges posed by work-from-home strategies and rising construction costs.
The company warned that uncertainty surrounding work-from-home policies and the added expense of building amenities to attract employees back to the office are hindering new office space development.
Clancourt highlighted that this shortage of office space could negatively affect foreign direct investment (FDI) in Ireland, impacting the country's corporation tax revenue. They also pointed to inflated construction costs and a lack of a level playing field in the commercial real estate (CRE) market, particularly regarding tax treatment between domestic and international investors.
A meeting between Clancourt executives and Minister for Finance Jack Chambers took place in December 2024 to discuss these challenges. While the meeting acknowledged the sector's difficulties, including a 70% drop in CRE investment in 2023, no concrete follow-up actions were noted.