Thought
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Thought Leadership Series
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The ESG Timeline for Real Estate in Ireland
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Residential Finance Development Finance in Ireland - An Overview
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Understanding Census 2022: Assessing population change, supply and anticipated housing need dynamics into the future
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The Benefits of Increased Housing Supply on Employment, Competitiveness, FDI and the Wider Economy
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Time Well Spent - Exploring the Impact of Hybrid Working on Irish Cities and Regions
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Close to Home. Exploring 15 Minute Urban Living in Ireland
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Institutional Investment - The Significant Role Of Collective Investment Vehicles In Irish Real Estate
April 2022
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Institutional Investment and the Private Rental Sector in Ireland
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Comments on the NESC Council Report No. 150, Housing Policy: Actions to Deliver Change
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The Significance of International Development Finance in the Irish Real Estate Market
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Towards a Sustainable Residential Rental Sector in Ireland
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Irish Apartment space standards are high “in comparison with apartment sizes in Europe
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IIP Response to Irish Government Economic Evaluation Service
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The Irish Housing Supply and Affordability Challenge Explained
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The Role of Institutional Investment in the Irish Real Estate Market
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Ireland’s Housing Need & Policy Options: An Overview
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Increasing Affordability for First Time Buyers
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IIP Policy Priorities – Sustainable Real Estate
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Home Truths on Costs of House Building in Ireland
MARCH, 2020
Dublin Cost Benchmark, Two Bed Unit, Build to Sell.
New report delivers home truths about the cost of building homes in Ireland – Irish Institutional Property.
A new report, published today, shows that the cost of delivery of new homes in Dublin ranges from over €330,000 for a two-bedroom town house to over €460,000 for a two-bedroom apartment. The data is contained in a new report published by Irish Institutional Property (IIP), the voice of institutionally financed investors with significant international backing in the Irish real estate market, and conducted by construction consultancy company Linesight. The publication comes at a time of much commentary on the costs of housing delivery and the best policies to end the housing crisis.
Key findings of the report include;
The construction costs alone of a two bedroom house in Dublin city or suburbs are a€158,000, but this rises to over €200,000 when costs such as planning, professional fees and finance are added. When VAT, levies and the cost of equity are included, the figure rises further to a final cost of over €330,000.
For apartments, construction costs are higher at €225,000 per unit (due to more onerous requirements around foundations, parking, provision of lifts etc), rising to over €300,000 when legal, planning and finance costs are included. The addition of VAT, levies and equity sees the final cost rise to over €460,000.
Commenting on the findings, CEO of Irish Institutional Property, Pat Farrell, said;
“When discussing housing policy, and proposing solutions to the housing crisis, it is important to be aware of the facts. Our report spells out the components of the price of housing, why prices are high, and the costs that need to be tackled to reduce prices for buyers. We hope that the data will help drive an informed debate on the issue and mitigate against some misunderstandings about the realities of home building here. Some recent commentary, and some proposals on how best to drive the delivery of a greater number of homes, are based on an improper understanding of these realities. Indeed, some proposals in the public domain would result in a reduction in the number of new homes delivered, which is something nobody would welcome”.
Data on construction costs is provided by Linesight, who are currently working on in excess of 10,000 residential units at various stages of completion in the Greater Dublin Area. Development levies are as per Dun Laoghaire Rathdown County Council for the Cherrywood SDZ. Finance and banking costs are as provided by Hines and an assumed site purchase cost per unit for the purpose of this exercise is €40k (excluding Stamp duty and fees).
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Irish Institutional Property
Fitzwilliam House,
3-4 Upper Pembroke Street, Dublin 2,
D02 VN24
Email: info@iip.ie
Phone: +353 1 5175921
