Fewer than 10,000 homes may be built this year

FEWER THAN 10,000 homes could be built in the Republic this year, placing the State at the bottom of the European residential construction table.

Figures released by the Construction Industry Federation (CIF) yesterday show that the number of new homes completed in the Republic in the first four months of the year halved to 4,925 from 10,041 during the same period in 2009. A CIF spokesman estimated that, at current rates, the maximum number of homes likely to be built this year and in 2011 will be 10,000.

He said this would be the lowest rate of new-home construction per head of population in the EU. At 10,000, the rate of new-house building here would be 2.7 per 1,000 of population.

The spokesman pointed out that the Economic and Social Research Institute (ESRI) estimates that the Republic needs to build about 40,000 new homes every year to meet the demands of its growing population.

The numbers show building in the Republic is continuing to decline. Just 1,706 new homes were started during the first four months of 2010, 30 per cent less than the 2,455 commenced in the same period last year.

So-called “one-off” houses accounted for the bulk of new homes during the period. Of the 1,706 homes that were started, 1,464 were single unit or one-off. Of those completed, 2,557 were single unit, 1,743 were in developments and 625 were apartments.

At the industry’s peak in 2006, 90,000 new homes were built in the Republic. However, the rate of building in the State in 2006 and during preceding years resulted in a surplus of new homes coming on the market. Estimates of the overhang of new homes in the market run to about 16,000 for the Dublin area alone. However, the CIF’s spokesman said yesterday the level of oversupply is likely to become less severe in cities.