Ireland’s Apartment Construction Lags Despite Planning Approvals
Ireland’s housing sector faces a significant challenge as less than half of the apartments granted planning permission between 2018 and 2022 have been constructed. Out of approximately 95,000 apartments approved during this period, only 44,000 were completed by the end of 2024, according to data from the Banking and Payments Federation Ireland (BPFI).
This shortfall in construction is alarming for the Government, which views apartment development as a crucial element in addressing the ongoing housing crisis. The urgency of the situation is underscored by recent Central Statistics Office (CSO) data revealing a nearly 39% drop in planning permissions for apartments last year compared to 2023. Furthermore, the Irish Times reported that the State’s Croí Cónaithe scheme, aimed at delivering 50,000 apartments by the end of next year, is projected to achieve only 17% of its target.
A significant factor contributing to the delay in apartment construction is the limited capacity of Uisce Éireann, formerly known as Irish Water, to connect new homes to essential services. The BPFI highlighted that Uisce Éireann can currently connect only 35,000 new homes annually, necessitating further investment to expand this capacity.
Brian Hayes, chief of the BPFI, noted that while the number of residential units granted planning permission decreased by over 21% last year, a substantial 260,000 units received approval between 2018 and 2024. Nearly half of these were designated for apartments, yet only 44,000 were completed over the seven-year span. Hayes emphasised that planning permissions are merely the initial step in the housing supply chain, and that infrastructure and utility provisions must accompany housing projects.
The delays in securing utility connections, such as water and electricity, are becoming increasingly evident, with Irish Water’s current capacity constraints posing a significant hurdle. The BPFI estimates that a substantial €17 billion from private capital sources is required to meet the increased housing output needed.
The shortfall in apartment construction amid high demand highlights the pressing need for strategic planning and investment in infrastructure to facilitate the delivery of housing projects. As the Government grapples with the housing crisis, addressing these bottlenecks is essential to ensure that approved housing developments translate into completed homes for the Irish population.
