Building costs are at their lowest level in 13 years and may be close to bottoming out, according to figures released yesterday.

According to a twice-yearly index compiled by the Society of Chartered Surveyors, construction tender prices are down 33 per cent from their 2007 peak, and are at or near 1998 levels. The society said yesterday that the rate of decline slowed last year and there are indications that prices are about to bottom out.

“While tender prices have fallen dramatically over the last three and a half years the latest index shows the fall in the second half of 2010 was just 2.1 per cent, while the fall for the year as a whole was 5.8 per cent,” the organisation said yesterday.

The group said that the industry is relying almost totally on State spending to keep going.