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Irish Times
3 days ago
- Business
- Irish Times
Dublin's €70bn infrastructural upgrade: how it breaks down
Despite the development of the M50 , Luas , Dart and the Port Tunnel, Dublin has outgrown its infrastructure and needs a €70 billion investment in housing, transport, water and energy (over 15 years) to catch up. That's according to KPMG . While the figure was used to showcase the consultancy's Dublin 2040 report, published on Wednesday, highlighting what Dublin-based businesses see as the city's strengths and challenges, it wasn't actually contained in the report. KPMG's corporate finance partner Hazel Cryan, however, told The Irish Times that its €70 billion estimate accompanying the report was derived from an analysis of various Government strategies in housing, transport and other sectors. READ MORE [ Dublin needs €70bn investment in infrastructure by 2040 Opens in new window ] 'We've applied an extrapolation out to 2040 based on those reports and what the known big projects very much an estimate,' she said. It breaks down as follows: €30 billion is needed to upgrade the city's transport network as per the Greater Dublin Area Transport Strategy, which includes mega projects like the proposed MetroLink underground rail project. A further €26 billion is earmarked for housing, mainly on the social and affordable projects and targets contained in current Housing for All strategy and beyond. KPMG also reckons that a further €10 billion is needed to upgrade the city's water infrastructure (which is highlighted as a key block on housing development). An additional €6 billion is also necessary to upgrade the city's energy infrastructure to meet the growing demand for electricity and to support the transition to a low-carbon economy, it says. A further €500 million is also needed to upgrade the city's climate risk and flood defence system. All in, a hefty outlay to get the city fit for purpose. KPMG's Dublin 2040 report is based on a survey 300 Dublin-based businesses and what they see as the key priorities. Unsurprisingly the survey found almost 9 in 10 (87 per cent) believe Dublin is doing poorly in the area of housing, reflecting what the report describes as 'the persistent and ubiquitous nature of the issue'. Housing is flagged as the top concern with 60 per cent of businesses seeing affordable accommodation as a critical infrastructure issue ahead of healthcare (20 per cent), public transport (15 per cent) and technology (5 per cent). 'Dublin is beyond an inflection point in a number of critical areas,' said Ryan McCarthy, managing partner at KPMG in Ireland.
Irish Times
4 days ago
- Business
- Irish Times
Local developers have key role to play in attracting international investment for housing
The prospects for addressing the State's housing constraints face complex challenges. But the challenge to scale development also comes with opportunity. So, how do we fast-track the institutional infrastructure and deploy the capital we need? The most effective response will come from a bottom-up approach and greater success in scaling housebuilders at a local level. If we can implement the necessary structural market changes, we can go a long way toward solving the housing problems that are limiting the State's potential. We've seen what's possible in delivering stock to the market with the success of our listed housebuilders, like Cairn and Glenveagh, along with privately owned Irish developers having international success, such as Ballymore. Central Statistics Office data show that 30,330 housing units were delivered in 2024, with Cairn and Glenveagh accounting for 15 per cent of that total. 'We're at a critically low level of housing stock' for buyers and renters Listen | 33:06 The figures also highlight the issue of concentrated development, as more than half (54 per cent) of the units were built in the Greater Dublin Area. This underlines both the challenge and the opportunity to expand regional capacity beyond the capital and its surrounding counties through an institutional or listed housebuilder. TPG's recent investment in Quintain Ireland's newly rebranded platform, Evara, highlights the strong appetite large-scale capital has for investment in the Irish residential market. READ MORE In conjunction with the call for accelerated development and regional spread comes the parallel demand for a full range of housing to satisfy market demand across the market. This includes for sale, social and affordable, student accommodation and rental product. The latest rental report, charting a record low level of housing stock available, shows that market interference has not worked. To address this, the Republic urgently requires more real estate managers and providers, such as Ires Reit and Kennedy Wilson. Greystar is one of the largest international platforms to have established a team here, with more than one million residential units under management globally. The future of our rental market is reliant on them growing, along with attracting institutional capital of similar quality and calibre into the country. We need these industry leaders to invest and grow if we are to match the ambition that we see from working with our international teams across other housing markets. Director at Interpath Advisory Clara Coakley: The State remains a largely attractive proposition on a pan-European basis. There is no doubt that the foundations to build upon in the Republic are strong. This is especially true in terms of our resilient economic record and sustained inward migration. All of this combines with this State's growing base of global corporations, which have driven consistent demand across residential, commercial and mixed-use assets. The State remains a largely attractive proposition on a pan-European basis. Institutional investors are still drawn because of those relatively strong metrics. Solid occupancy, rental demand and long-term growth potential exist across the asset classes. This applies not just in the private rented sector and co-living, but in urban regeneration, logistics, life sciences and sustainable retrofit. However, we are still far short of fully capturing the interest of international capital to reinforce the necessary flow of investment. Policy consistency and investment opportunities of scale remain elusive within the Irish market. Liquidity, risk profile and the ability to execute on a pipeline all factor into how capital gets allocated. On that basis, the Republic can sometimes be harder to sell than should be the case. Institutional capital is always looking for large, highly experienced platforms to invest into. There is global recognition of the housing dislocation in the Republic and the opportunity that exists. As this State is competing for this capital with other European countries, we must continue to develop best-in-class teams to make it as compelling a case as possible. No one is suggesting that the challenge and path ahead are easy. However, if we are to maintain economic growth and social progress, we must enable another level of institutional-grade development and asset-management platforms. That means being led from the ground up by domestic developers, local managers and delivery teams. They play a crucial role in attracting new capital into the market, building investor confidence and ultimately more homes and communities. The State's housing and infrastructure needs are urgent. We shouldn't confuse urgency, though, with short-termism. Delivering volume today without building the platforms for tomorrow will only deepen our dependency on an uneven and fragile supply chain. The Irish market cannot wait for political conditions to align perfectly. We need to prioritise the continual advancement of our development platforms and investment structures. These will attract the necessary capital to radically increase our output in all forms of housing. If we can grow more of that ambition and capacity from the ground up, the capital will come, and housing infrastructure will scale on a faster track. Clara Coakley is a director at Interpath
Irish Times
6 days ago
- Business
- Irish Times
Without a wastewater plant, building in Dublin will dry up in 2028, Uisce Éireann warns
There will be no capacity for any new homes in Dublin in fewer than three years if a key wastewater project is not delivered, Uisce Éireann has said in its starkest warning yet on water constraints. The utility has been cautioning in recent weeks about the impact of water treatment constraints on housing supply after the Government changed its target to 303,000 new homes by 2030. However, it has now said that 'by 2028 Uisce Éireann may be unable to grant new connections to the wastewater network in parts of the Greater Dublin Area '. The Greater Dublin Drainage (GDD) project is a €1.3 billion wastewater treatment facility that will serve half a million people in north Dublin and parts of Meath and Kildare. READ MORE It was first proposed more than 20 years ago and was granted planning permission in 2019. However, this was quashed by the High Court in 2020 and it is now back with An Bord Pleanála for the last 11 months. Delays to the project have meant the price has doubled and the tendering process for its construction has had to collapse. It is understood the project will take five years to complete once planning permission is granted. Although interventions can be made to increase the capacity of the Ringsend Wastewater Treatment Plant, there is no guarantee of capacity there for the increasing growth in housing connections that the Government has committed to. [ Analysis: How vital water project stalled for years over minor paperwork issue Opens in new window ] In this case, it is likely that the utility provider faces two options: either to stop new connections, or to ignore the discharge licence requirement at Ringsend and risk more frequent spills of unfiltered water into the Irish Sea. Following a briefing with The Irish Times in recent days, Uisce Éireann said the project is 'critical' to cater for the growth required in the Greater Dublin Area. Ringsend plant: while interventions can be made to increase the capacity of the plant, there is no guarantee of capacity there for the increasing growth in housing connections that the Government has committed to. Photograph: Cyril Byrne The Irish Times previously reported the utility company had warned Dublin City Council that future population growth in the city is 'dependent' on the construction of the new sewage plant. In a follow-up statement, Uisce Éireann said: 'The GDD is required to be delivered by 2032 to ensure wastewater treatment capacity in the Dublin area is not exceeded. 'To meet this time frame, the design and tender process for the project needs to be progressed . . . Uisce Éireann is currently waiting for further details from An Bord Pleanála on the timeline for its decision.' All new connection requests to the wastewater network are now being assessed on a case-by-case basis, and the utility company is facilitating housing connections 'in so far as possible' in the short to medium term. [ The Irish Times view on Ireland's wastewater treatment: progress needs to be accelerated Opens in new window ] It is doing this by upgrading the Ringsend Wastewater Treatment Plant and 'accelerating interim capital measures across the network' in Dublin. However, without the completion of the Greater Dublin Drainage project, its 'ability to cater for ongoing growth is limited', Uisce Éireann said. 'By 2028 Uisce Éireann may be unable to grant new connections to the wastewater network in parts of the Greater Dublin Area,' the utility company said. The need for a new wastewater treatment facility in Dublin was first established in a report published in 2005 called the Greater Dublin Strategic Drainage Study. [ How Arklow turned a major sewage problem into an opportunity to build something spectacular Opens in new window ] At that time, it was recognised that the capacity of the Ringsend plant was limited, and a new regional plant and orbital sewer were needed. The GDD project was started in 2011 by Fingal County Council, with the site selected in 2013, and was lodged for planning permission in 2019. There were more than 14,000 objections from local residents, and public hearings on the plans were held before An Bord Pleanála later that year. [ Dublin in top 20 cities sampled for levels of cocaine, ketamine and ecstasy found in sewage Opens in new window ] Although it was granted planning permission in 2019, that was later quashed and returned to An Bord Pleanála after a High Court judge ruled the board failed to correctly seek observations of the Environmental Protection Agency . That case was taken by a local sea swimmer who was concerned about the impact on water quality in Portmarnock. A consultation on further Uisce Éireann information closed 11 months ago, and the utility is still waiting on a timeline for the planner's eventual decision.
