An analysis of Department of Housing statistics by Goodbody Stockbrokers has showed that most new housing units currently being built in Dublin are apartments. These are either being built as social housing or financed by cuckoo funds. As such, only a limited number of these units will be made available for purchase.
Dermot O’Leary, a Goodbody economist has fingered planning blockages through the courts for overall construction levels falling back. This, he said, poses a threat to the delivery of the potential 30,000 units a year being achieved.
The economist established that on average, seven out of 10 unit commencements in Dublin are now apartments. “It is Government policy to promote higher density, but these units are only viable for either the private rented sector (PRS) or for the provision of social housing. A very small number of these units will be made available for household purchase,” he said.
Across Ireland, a third of all commencements are now apartments. O’Leary said the Department of Housing figures show the growing importance of apartments in output in Ireland, and specifically in Dublin, but the overall level of home construction may not reach hoped-for levels.
“The boom in new housing supply in Ireland seen after the reopening of the construction sector in April 2021 is fizzling out, with planning blockages through the courts posing a threat to the delivery of 30,000 units per annum being maintained.”