€1.47bn worth of residential construction started in Ireland during first nine months of 2014
€1.47bn worth of residential construction on multi-unit developments was commenced in Ireland during the first nine months of 2014 according to Irish based consultancy Link2Plans.
Analysis from Link2Plans show that in the period from January through to the end of September 2014 a total of 264 multi-unit development projects were commenced, which when completed will result in a total of 6,388 residential units. These multi-unit residential projects are now under construction contributing to the growth in the sector that is being felt in terms of employment, activity levels and sentiment.
The information is contained in the Residential Developments Report from Link2Plans and it provides a breakdown by quarter of the multi-unit residential projects that have commenced construction. Every project that has commenced construction as per the planning regulations and has two or more units is included in this report. Units included in the 6,388 total comprise detached, terraced and semi-detached houses, duplexes and apartments. It excludes one-off houses, self-build and housing extensions.
Produced by a team of researchers at Link2Plans, the information has been compiled from every project commencement relating to multi-unit developments lodged with every planning authority in Ireland. The Link2Plans researchers have examined each project and an estimated construction value has been attributed using the construction cost guides produced by the Society of Chartered Surveyors of Ireland.
Speaking about the launch of the Residential Developments Report, Danny O’Shea Managing Director of Link2Plans said “this is the first time that we have had an actual figure for the number of homes and apartments actually under construction at any given time. The Link2Plans research shows that work on 264 multi-unit development projects relating to 6,388 residential units being built, has commenced construction since the start of 2014 up until the end of September. The analysis of the research from Link2Plans also highlights some important trends in the Irish residential construction market. Unsurprisingly, Dublin accounts for the majority of the multi-unit projects commenced in the first nine months of 2014 with 108 multi-unit development projects started in the capital. With an estimated construction cost of over €841 million, the corresponding 3,610 residential units are equal to 57% of the total number of multi-unit developments in Ireland for that period.”
Danny O’Shea Managing Director of Link2Plans continued “the Residential Developments Report is one of the most comprehensive pieces of analysis on the Irish residential construction market that is available. The Link2Plans research provides a detailed overview of every multi-unit project developments on a quarterly basis, including the number of projects, the number of units of each project and the cumulative cost of construction for the following regions: Dublin, the Rest of Leinster, Munster, Connaught and Ulster as well as nationally.”
In total, from January to September 2014, the Rest of Leinster saw 74 multi-unit development projects commenced comprising 1,312 units with an estimated value of over €314 million. In the same period, Munster recorded 59 multi-unit development projects with a corresponding 1,314 units which has an estimated value of over €288 million.
The combined figures of Connaught and Ulster illustrate a much lower level of residential construction activity in those regions with only 23 multi-unit development projects relating to 152 residential units commenced during the first nine months of 2014 which have an estimated value of just over €27 million.
When viewed on a quarterly basis however, there has been a certain amount of fluctuation in the level of construction activity for each region. In Q1 2014 Dublin saw work on 76 multi-unit development projects commenced which comprised a staggering 2,782 residential units with a construction cost of over €638 million.
These multi-unit developments represented 64% of the total number of residential units that commenced construction nationally in that period. Q2 2014 however saw a significant decrease for Dublin, as its share of the multi-unit developments market fell to 29.40% with 11 multi-unit development projects comprising 232 residential units, valued at over €66 million. Munster with 9 multi-unit development projects comprising 365 units accounted for 46.26% of the total number of residential units commenced in Q2 across the entire country.
Q3 2014 saw Munster suffer a significant drop, as it recorded its lowest number of residential units in that quarter with 83 units, valued at over €19.5 million. While there were 12 multi-unit development projects in Munster for that period, the number of residential units represented only 6.7% of the total number of units in Ireland that work commenced on during that period. Conversely, the Rest of Leinster recorded its highest number of residential units to commence construction in Q3 2014 with 20 multi-unit projects representing 549 residential units which have an estimated construction cost of €124 million. This equated to 46% of the total number of residential units commenced in that quarter nationally.