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Dublin Business Q1 Outlook: Costs, Constraints and Cautious Optimism

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26 March 2026

This week, Dublin Chamber published its Q1 Business Outlook Report, capturing sentiment from 225 firms across the Greater Dublin Area. Our latest survey findings point to cautious optimism among firms for 2026, with organisations sharpening their focus on cost control, productivity, and resilience in the face of ongoing economic uncertainty and persistent infrastructure constraints.

Cost pressures remain the defining issue for Dublin businesses, with 68% of firms identifying managing the cost of doing business as their top priority for 2026, up from 60% in 2025. In response, companies are placing greater emphasis on productivity and digital transformation. The share of firms prioritising productivity has risen notably, from 31% to 37% over the past year, while the percentage of firms prioritising investment in digital transformation and AI adoption has increased from 41% to 44%.

Rising costs and tightening margins continue to weigh heavily on firms, with 80% of respondents citing them as their most significant challenge for the year ahead. Geopolitical and global trade instability has climbed to the second-highest concern (58%), overtaking talent acquisition when compared with Q1 2025. While talent pressures have eased slightly, they remain significant at 55%. At the same time, technological disruption, particularly AI, is growing in importance, rising from 30% to 39% year-on-year.

Infrastructure constraints are seen by businesses as the primary barrier to unlocking Dublin’s competitiveness. Housing availability and affordability (84%), alongside transport and congestion (64%), are identified as the most significant constraints on growth. Planning delays and gaps in essential infrastructure, particularly in energy and water, follow at 48%. Reflecting these challenges, nearly half of firms (49%) report low confidence in the State’s ability to deliver critical infrastructure projects in Dublin.

Budget 2027 will be a critical opportunity to address many of these challenges. Businesses are clear in their priorities: increasing housing supply (76%) and sustained investment in infrastructure (73%) remain top of the agenda. This is followed by improving public services (44%), reducing the number of people paying the higher rate of income tax (35%), and strengthening key tax supports, including the R&D Tax Credit, the Key Employee Engagement Programme (KEEP), and the Employment and Investment Incentive Scheme (EIIS) (21%).

Beyond fiscal measures, firms are also calling for more efficient day-to-day regulatory engagement. Reform of the Revenue Commissioners’ processes is a key ask, with businesses seeking more responsive support (18%) and simpler processes (13%) to reduce administrative burdens and improve clarity.

These findings will shape Dublin Chamber’s advocacy agenda in the months ahead, particularly in advance of the annual budget process. The full Q1 2026 Business Outlook Report is available here.

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