Latest news with #CraneSurvey
RTÉ News
7 hours ago
- Business
- RTÉ News
€122 billion investment needed by 2030 to meet housing targets
A new survey reveals that a total investment of €121.6 billion is needed between now and 2030 if Ireland is to meet its housing targets. Deloitte's new Crane Survey Report found that an investment of €16.4 billion is required this year, rising to €17.2 bilion in 2026, €19.3 billion in 2027, €21.3 billion in 2028, €23.3 billion in 2029 and €24.1 billion by 2030 to achieve the Government's target of 60,000 homes a year. Deloitte said that given the scale of the challenge, Ireland is unlikely to reach or maintain the annual output of 60,000 homes. The Deloitte Crane Survey Report is a comprehensive analysis of construction activity across Irish cities, tracking what is being built and where and what this means for the country's economic and social priorities. The latest Crane Survey report estimates a total housing output of 33,000 this year, below the Government's target of 41,000. Risks to delivery in 2025 are "tilted to the downside", according to the report, which adds that in the absence of a "healthy planning pipeline" it is very difficult to see the required level of 60,000 homes a year being achieved in the first instance or maintained. A total of just over 30,230 new homes were delivered in 2024, a drop of 7% on 2023. Meanwhile, just 32,400 homes were granted planning permission last year, down 3%. Deloitte said this figure is "particularly stark" as it represents just two-thirds of what is needed each year if Ireland is to deliver the 60,000 homes a year required to meet current housing need and future population growth. Its analysis shows the drop in granted planning permissions was driven by a substantial reduction in the number of apartments which received planning, down 39% year on year. It noted that commencements soared to 69,060 units in 2024, up 121% year on year, but this was linked to expiring incentives, which were ultimately extended. Commencements have been subdued in the opening months of this year, it added. Deloitte said the Government's decision last month to extend planning permissions for schemes due to expire shortly is welcomed. It also said the recently announced reforms to the current Rent Pressure Zone (RPZ) model are a welcome step in the right direction, but, on their own, are unlikely to yield a significant activation in commencements. Today's survey notes that just 895 purpose-built student accommodation bedspaces (PBSA) completed construction last year. This was down from 1,630 bedspaces in 2023 and represents the lowest level since Deloitte's records began in 2016. The delivery of PBSA bedspaces was confined to Cork and Dublin - with 620 at NovelBottle Works at the former Coca-Cola bottle factory on the Carrigrohane Road in Cork and 190 bedspaces at The Residence on Prussia Street in Dublin. The remaining bedspaces were delivered at Blackhall Place in Stoneybatter in Dublin where a refurbishment added an additional 80 beds. The report noted that by the end of the first quarter, 1,400 PBSA bedspaces were under construction across six schemes, compared to 1,160 bedspaces at the same time last year. Construction is spread across Galway, Dublin, Limerick and Kildare. Today's report also shows that completions in the Dublin office market rose last year to 169,500 square metres, a substantial increase on 2023 volumes of 95,400 square metres. But Deloitte said this rise was expected and should not be regarded as an indication of increased construction activity within the sector and reflects the completion of an overhang of stock. The report says that the only delivery expected in 2027 based on current construction statistics is 1 Adelaide Road, which is already pre-let in full. This means 2027 may be the first year since 2015 that no new office space will be delivered in the city, it added. Meanwhie, the volume of new rooms added to the hospitality market declined by 17% last year with just 1,358 new rooms. Some 4,060 rooms were under construction in the first quarter of this year, however, with Dublin absorbing the lion's share. This represents a significant rise on last year's Crane Survey (2,850 rooms) as several large hotels commenced construction, including at Dublin Airport, where 412 rooms are set to be delivered. In total, 1,410 new rooms are due to be added in 2025. A further 2,510 beds are due to be delivered in 2026, with the remaining beds under construction due to be delivered in 2027. Kate English, Chief Economist at Deloitte Ireland, said we are seeing cranes across the skyline, but not enough where they are needed most. "What this research reinforces is that the biggest issue facing Ireland right now isn't demand, it's supply. Whether it's homes, student beds, or affordable units, we're simply not building enough to meet the needs of a growing population and a resilient economy," Ms English said. "A stable policy environment is crucial in Ireland, as inconsistency in housing policy will deter and dampen investor confidence in Ireland. Without stability, capital will be redirected to jurisdictions offering more predictable and investor-friendly environments. This is not a hypothetical risk, it is a market reality," she cautioned.
Irish Independent
2 days ago
- Business
- Irish Independent
Survey records fall in hotel rooms and student places built last year
An analysis of the development landscape in Ireland, it found just 895 purpose-built student bedspaces were built, down from 1,630 the previous year, and the lowest level since Deloitte started the data series in 2016. In the hotels sector, 1,360 new rooms were added, a decrease of 17pc annually. Among the arrivals were the Ruby Molly, Leinster Hotel and NYX Hotel in Dublin, plus The Moxy and a Premier Inn in Cork, the Radisson Red in Galway and Ravenport Resort in Wexford. At the end of the first quarter of this year, 4,060 rooms were under construction, mostly in the capital city. Several large hotel projects commenced construction, including at Dublin Airport, where 410 rooms are being delivered by Accor and The Arora Group. That hotel, which is due to open at the end of next year, will operate as the first Sofitel Hotel in Ireland. Overall, 1,410 new hotel rooms are due to be added this year. These will include the recently reopened Mercantile Hotel in Dublin, with 105 rooms, and the CitizenM, St Patrick's Hotel, also in Dublin, with 245. The Point A Hotel in the Liberties will provide 95. A further 2,510 hotel beds are due to be delivered in 2026. In terms of student accommodation, the Crane Survey says all the delivery was in the country's two biggest cities, with 620 at Novel Bottleworks, on the former Coca-Cola bottle factory on the Carrigrohane Road, Cork and 190 at The Residence in Prussia Street, Dublin. The remainder were in Blackhall Place, Stoneybatter, where a refurbishment added an additional 80 beds. At the end of Q1 this year, there were 1,400 student places under construction across six schemes in Galway, Dublin, Limerick and Kildare. This stems from government funding announced last year, in which €100m was allocated to deliver accommodation at UCD, DCU and Maynooth, where 115 bedspaces are under construction and due to be delivered for the 2025/2026 academic year. Galway should get the largest increase in student accommodation, with construction under way across three schemes totalling 840 spaces. This would give a 16pc boost to the city's stock. The Deloitte survey points out there were 206,365 full-time students enrolled in third-level institutions in Ireland in the last academic year, a growth of 9pc since before the Covid pandemic. While the number of domestic students increased only slightly, the number of international students is up by 33pc during the same period. They account for almost one in five of the student population. 'In the medium term, enrolments in third-level students in Ireland are expected to peak at 240,000 full-time students in 2030, due to factors including domestic demographics and increased international enrolments,' the report says.
