Planning Permission Risks Derail Ireland’s Housing Push
Ireland’s ambitious infrastructure and housing plans face collapse without urgent readiness, Aecom warns.
Aecom highlights critical gaps in preparation that threaten Ireland’s major infrastructure and housing initiatives. The firm forecasts construction output growth of about 4 percent in 2026 ahead of its industry review. Without improved readiness, delays in planning permission processes could halt progress on key projects nationwide.
Engineers stress the need for better coordination across sectors to support the government’s push. Housing schemes require swift An Bord Pleanála decision timelines to meet demand. Current bottlenecks in approvals risk undermining the 2026 budget’s €7.2 billion allocation to housing and local government. Infrastructure like water and energy upgrades depend on timely permissions to avoid cost overruns.
Flood-risk development poses another hurdle, as environmental assessments slow housing scheme approval. Aecom points to insufficient groundwork in workforce capacity and supply chains. The National Development Plan’s €121 billion public investment for 2026-2030 demands streamlined processes to deliver transport, health, and energy projects on schedule. Delays here could exacerbate the housing shortage projected to last until 2040.
Material contravention issues in plans further complicate environmental impact evaluations. Aecom urges proactive measures to build resilience against these challenges. Government efforts, including VAT cuts on new apartments and starter home funding, need robust planning support to succeed. Experts call for emergency actions to close the supply gap of tens of thousands of units annually.
Construction viability suffers from rising costs and planning delays, impacting apartments and student housing. The ESRI predicts only 37,000 homes in 2026, well below the 52,000 needed. Aecom’s warning underscores the choice: accelerate readiness or watch competitiveness erode as talent leaves for affordable markets.
Originally reported in Business Post on Tue, 13 Jan 2026 10:15:54 +0000. Full story
