41,000 Apartments With Planning Permission Lie Idle
Thousands of apartments sit unused despite having planning permission, highlighting a major bottleneck in Ireland’s housing delivery.
Recent figures reveal that up to 41,000 apartments across Ireland have received planning permission but remain unstarted. This backlog represents a significant portion of the country’s housing pipeline, with many schemes stalled due to economic and regulatory challenges. The situation has raised concerns about the effectiveness of current planning processes and the ability to meet national housing targets.
Developers cite a persistent “viability gap” as a key reason for the delays. Rising construction costs, higher interest rates, and shifting investor sentiment have made many projects financially unworkable, even with government supports in place. The Society of Chartered Surveyors Ireland and Trinity College found Dublin to be the second most expensive European city for apartment construction, trailing only Zurich. This cost pressure means that even if VAT were eliminated, Dublin would still rank among the priciest cities for development.
State investment in housing has increased substantially, with billions allocated to boost apartment construction. The Land Development Agency (LDA) and approved housing bodies (AHBs) are advancing purchase agreements for many stalled schemes, often for cost-rental projects. However, despite these efforts, the number of new apartments being built has dropped sharply—falling by 24 per cent last year to just 8,763 units. This decline follows the withdrawal of international investors after 2021, further reducing the momentum behind new developments.
Planning challenges and delays continue to add uncertainty for developers. The government’s revised housing plan, expected soon, is likely to address issues such as planning reform and land supply. Recent changes to rent regulations and extensions to existing planning permissions aim to preserve stalled projects and encourage progress. Yet, without a significant increase in completions, the government will struggle to reach its annual target of 20,000 to 25,000 new homes.
Industry experts warn that the current pace of apartment building is insufficient to close the housing gap. While the number of completions is expected to rise, it remains unclear whether the sector can deliver the volume needed to meet national targets. The backlog of apartments with planning permission underscores the need for targeted interventions to unlock stalled schemes and accelerate housing delivery.
Key factors influencing the sector include:
- High construction costs and economic uncertainty
- Delays in planning and regulatory approvals
- Changes to rent regulations and planning permission extensions
- Increased State investment in cost-rental and affordable housing
- Ongoing challenges with An Bord Pleanála decisions and environmental impact assessments
The scale of stalled apartment schemes with planning permission highlights the urgent need for coordinated action to address viability, streamline approvals, and ensure that approved housing schemes move from paper to reality. Without decisive steps, the backlog will continue to hamper Ireland’s efforts to solve its housing crisis.
Originally reported in on Fri, 28 Nov 2025 07:32:48 +0000. Full story
