Article by Sean Gormley, Surveyor, Industrial and Development Land at Lisney. (sgormley@lisney.com)

Overview

From 1 May 2025, new building regulations in Ireland made fire sprinkler systems a requirement in warehouse and storage facilities. Introduced under the Building Control (Amendment) Regulations 2025, these measures align national fire safety standards with leading international practices.

For developers, occupiers, and investors in the industrial and logistics sector, the changes have a direct impact not only on safety but also on development costs, site selection, and rental values.

What’s changing?

The regulations clarify building classifications, distinguishing Industrial – High Hazard and Normal Hazard, and Storage Facilities – High Hazard and Normal Hazard. A building’s classification, along with the type of goods stored, will now determine whether sprinklers are mandatory. The revised Technical Guidance Document B brings several key amendments for industrial properties, including:

• Classification of high-rack storage over 7m as High Hazard;
• Potential reclassification of certain storage from high hazard to normal hazard if sprinkler-protected, increasing the size threshold from 2,000 sq.m to 14,000 sq.m;
• Requirement for fire-resistant zones or flanking walls in buildings over 15m unless sprinklers are installed;
• Stricter standards for external wall materials and firefighter access in buildings between 11m and 20m high.

These rules apply not only to new builds but also to significant alterations, with changes of use, warehouse subdivisions, or other major works now requiring a Commencement Notice, a Fire Safety Certificate, and, where applicable, a Disability Access Certificate.

Impact on Development Costs

Mandatory sprinklers increase development costs. Installation requires not just the system but water tanks, hydraulic systems, and pipe networks, adding several euros per sq.m. Professional fees are also rising due to more detailed compliance requirements, and retrofitting older warehouses can further increase costs.

Market Implications

For developers, higher build costs tighten margins, favouring greenfield developments over retrofits. Occupiers may face higher rents to cover capital investment, though lower insurance premiums and reduced operational risk could offset some costs. In the short term, pre-existing projects will meet demand, but over time, the regulations will impact both refurbishment of older stock and new developments.

Costs of Installation

Sprinkler installation typically costs €130–€150 per sq.m, covering preliminaries, pumps, tanks, valves, pipework, and ESFR roof protection. Costs rise with building size, hazard classification, or complex retrofits.

Final Comment

Under the Building Control (Amendment) Regulations 2025, mandatory fire sprinkler systems in warehousing and storage facilities mark a significant step in raising fire safety standards across Ireland. While these measures increase development costs and regulatory complexity, they also create higher-specification, safer logistics assets. For occupiers, improved safety standards may bring operational and insurance benefits, though landlords will seek higher rents to recoup the necessary investment.

Developers and large-scale occupiers should engage early with fire safety engineers, certifiers, and planning advisors to assess the impact, manage costs, and ensure compliance. Success for developers will depend on careful site selection and cost control, while occupiers must weigh slightly higher rents against reduced risk and enhanced protection. Lisney will continue to monitor these changes and advise clients navigating the industrial and logistics sector.

For more research or insights our expert team at Lisney is here to help.