House building remains static despite ‘huge demand’

Construction industry group warns of ‘economy-threatening infrastructure crisis’

Demand for housing to address sharply rising property prices and a growing homeless problem have not translated into increased action on new projects.

And, the Construction Industry Federation (CIF) says, the same is true of much-needed large-scale infrastructure projects.

Figures from the industry group show that work started on €3.9 billion worth of projects in the first half of the year. However, the number of projects was essentially the same as last year and planning permissions granted was down on that same basis.

On a slightly more optimistic note, planning applications lodged were up on the first half of last year – a reversal of the trend from the first quarter of the year.

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Commencements

“This analysis shows project commencements are relatively static and permissions granted projects are down despite huge demand for construction activity in the residential, commercial and infrastructural sectors,” said CIF director general Tom Parlon.

He said that the CIF had long stated that there are fundamental issues such as a lack of finance, procurement issues and planning delays that are preventing the efficient and timely delivery of critical construction projects.

“The fact that new project commencements are static year on year is a concern in the face of the shortage of housing and what everyone agrees is now an economy-threatening infrastructure crisis,” Mr Parlon said.