Value of Construction projects up over €3.19 billion in 2015
The total value of all construction projects commenced in 2015 jumped significantly throughout the year, increasing by €3.19 billion to €6.12 billion when compared to the same period in 2014 according to the latest edition of the Building Information Index.
This rise in the value of construction activity equates to an increase of +109% in the value of actual construction activity for 2015 when compared to 2014.
The Building Information Index which is produced by a team of researchers at Building Information Ireland contains positive news for all regions of Ireland and all sectors of the construction industry. The research contained within the Building Information Index has been gathered from every individual construction project in Ireland and provides real-time analysis of every project as it is happening. Medium term projections for the construction industry from Building Information Ireland are based on the examination of every planning application, which allows a very medium to long term outlook to be gathered.
Increase of +109% in the value of Project Commencements
“The Building Information Index shows that the value of commenced construction projects increased by €3.19 billion to €6.12 billion in 2015 from €2.93 billion for 2014. Nationwide the statistics show that the long talked about recovery in the construction sector is beginning to be felt in every region”.
“The data from the Building Information Index shows that the value of Project Commencements are up significantly everywhere. Munster has recorded the largest increase with gains of +206%, Dublin +134%, Leinster +55% and Connacht/Ulster +34% showing that the volume and the value of construction projects that started in 2015 is very strong throughout the country, ” said Danny O’Shea Managing Director of Building Information Ireland.
“The strongest performing sector of the seven sectors within the construction industry for project commencements is once again Commercial and Retail with growth of +217%. Industrial construction was similarly up 160%. The really good news for all those looking at the residential construction sector is that the growth in project commencements was +114%, a doubling of output up to €2.74 billion in 2015, when compared with the previous year, helping to firmly establish residential construction as the dominant component of the entire construction industry,” continued Danny O’Shea.
Project Applications up +22%
Project Applications, which measures the value of construction projects that have applied for planning permission, are also up by +22% to €15.43 billion in 2015 from €12.64 billion for 2014. The largest jump was experienced in the Industrial sector with growth of +80% to €1.22 billion, while growth in the larger residential sector was +31%, rising to €8.23 billion from €6.27 billion the previous year.
Confidence in construction sector is driving private sector investment as public investment lags behind
According to Danny O’Shea, “Investment from the private sector, increased consumer and industrial confidence is driving growth in the construction industry and this is borne out by the fact of the €15.43 billion of projects that applied for planning in 2015, only 11% or €1.58 billion of this was publicly funded by the exchequer.”
Projects with a total of 18,273 residential units commenced construction in 2015
Residential construction projects with a total of 18,273 units commenced construction in 2015, up from 9883 in 2014, a rise of 85% which is also reflected in varying degrees of growth in every region of the country. The largest growth +134% was felt in Dublin with projects starting construction that when complete will have 8215 individual housing units. Leinster was next with 5382 units (+82%), Munster saw growth to 3159 units (+64%) and Connacht / Ulster increased to 1517 units (+2%).
“The focus on residential construction remains strong and all of the vital signs are positive according to the data contained in the Building Information Index. There is a strong upward trend in all parts of the country in relation to residential projects under construction. In addition to this, 2015 saw a 27% increase in the number of residential units that commenced the planning process by submitting planning applications. A total of 44,733 residential units would be built if all of these projects proceed through the planning process, representing a construction value of approximately €8.23 billion,” said Danny O’Shea
75 weeks on average from Application to Commencement on site
The Building Information Index shows that the average number of weeks it takes for a construction project to get from the planning application stage to work starting on site was 75 weeks.
Construction projects in the Residential sector continue to be the slowest to get through this process, taking on average 138 weeks, which is much slower than the previous edition of the Building Information Index which was 132 weeks. The best sectors for speed from application to commencement were Education (52 weeks) and Agriculture (52 weeks) followed by Industrial (54) weeks.
Danny O’Shea said, “The Building Information Index shows that in 2015 construction projects are slowing down getting from application phase to commencement on site, with the average length of time for a residential project to get from application to actual construction work is 964 days.”
The Building Information Index is produced by a team of researchers at Building Information Ireland who examine the various phases on every construction project using up to date planning and detailed project information. The Building Information Index contains the most comprehensive Construction Activity Database in Ireland with real-time information on planned and current construction projects in Ireland and is produced by a team of researchers at Building Information Ireland.
The Building Information Index provides a quarterly breakdown of the actual monetary value of construction projects in the Irish construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social.