Planning permission was granted for 11,374 new homes in the second quarter of this year, 2 per cent up on the same period last year, suggesting the pick-up in residential construction is continuing despite the price squeeze.
Of the total, 39.8 per cent (4,532) were for houses and 60.2 per cent (6,842) were for apartments. The number of houses granted planning permission grew by almost 17 per cent on an annual basis to 4,532 units, while in contrast, there was a decline of almost 6 per cent in apartment approvals to 6,842 units.
Dublin accounted for the majority of apartment planning permission approvals with 69.5 per cent of the total. During the same period, the Border region (Donegal, Sligo, Leitrim, Monaghan and Cavan) recorded the lowest number of apartments granted planning permission at 26.
The capital has been experiencing an apartment building boom on the back of a surge in institutional investment. Estate agent Sherry FitzGerald estimates that PRS investors have invested close to €7 billion in the Irish residential market since 2011, most since 2018, and most of it in Dublin.
READ MORE
The figures show there was an annual rise of more than 28 per cent in the number of multi-development houses receiving planning permission, compared with a 3 per cent increase in one-off houses.
Planning permissions offer an imperfect guide to future building activity as many permissions never translate into homes.
Some are sought just to add value to land or to alter existing provisions. Equally, many building projects fail for financial reasons before the building phase begins.
The CSO’s latest Residential Property Price Index suggested average house prices rose by 14.1 per cent during the 12 months to June this year. However this level of growth is expected to slow significantly in the coming months on the back of the cost-of-living squeeze and higher interest rates.
