Construction Information Services notes the housing sector saw a substantial increase in project volume in 2022, with 27,869 units commencing on site. JOSH WILER, CIS, reports.
The activity in the housing sector in 2022 saw a noticeable increase in project volume and value across the board in terms of plans submitted. There was 26.1% value growth (€13.9bn) year on year for plans submitted in the eastern region of Ireland despite the relatively small increase in project volume of just over 3% over 2021.
In the southern region, our data shows a 30.6% increase in value (€4.45bn) along with a 4% increase in the volume of projects.
Finally, in the western and northern region, we note a value increase of 17.5% (€915m) with a high uptick in volume of 24.3%.
This growth in the sector reflects the increase in demand across the country, which has resulted in apartment unit planning taking a further lead on housing/ scheme housing across the board.
General on-site activity declined year on year, which could be attributed to difficult market conditions as well as the influence of the pandemic on the increase of construction. It is important to note that 2022 saw issues arise with material costs due to the Russian invasion of Ukraine, as well as the increasing cost of inflation on society.
Residential planning submissions in 2022
In terms of plans submitted to the end of Q4 2022, CIS recorded 1,865 planning applications lodged, equating to 89.1k units with a total value of €19.3bn, and a regional breakdown of 74% Leinster, 20% Munster, 5% Connacht, 1% Ulster.
Plans granted in 2022 equated to 1,153 planning applications approved planning permission, equating to 42.5k units, with a regional breakdown of 64% Leinster, 28% Munster, 5% Connacht, and 3% Ulster. In comparison, CIS observed 1,255 applications being approved planning, equating to 44.7k units in 2021.
Residential commencements in 2022
Figures in 2022 saw 27,869 units commencing on site, with the majority, unsurprisingly, starting in Dublin with just over 10.1k units. The highest amount of activity in terms of nationwide volume took place between March and May, with activity trailing off towards the winter months in terms of commencements.
Residential completions in 2022
Completion figures are often disputed within the construction industry, and 2022 is no different. Last year, CIS observed 907 apartment and scheme projects (excluding single dwellings) through to completion. When single dwelling completions are included, the overall residential completions figure for 2022 is 23,751 units. Of these, 28% were located in the Dublin region while the mid-eastern region accounted for 27% – which combined make up for over half of all completions recorded in the country.
The highest volume of completion activity took place in Q4 2022, which accounted for one-third of the total number of residential completions, the vast majority of which were scheme housing and apartment units.
Residential activity driving factors
The year 2022 was a particularly turbulent one for Ireland’s construction industry. Global events have resulted in skyrocketing material costs and general inflation, while labour shortages continue to be a major challenge on many construction projects. Furthermore, the ongoing effects of Brexit continue to be felt on supply chains, affecting raw material availability between us and our largest raw material supplier country, the United Kingdom.
Finally, the war in Ukraine and resulting energy price increases have only exacerbated these negative effects by increasing transportation costs, further complicating the jobs of construction companies.
It is worth mentioning that these issues span across Europe and beyond. Though, due to the isolation of our island, they may present more dramatically than on mainland Europe.
Construction Information Services takes pride in the accuracy of the data we provide. Over the course of our 50+ years in business, we’ve refined our research and figure-determination methods. Commencement and completion data is taken from the Building Control Management System of the National Building Control Office. Legislation dictates that building control authorities must receive details on the commencement and completion of all new builds, extensions or material change of use or phases thereof as part of the certification process. CIS researchers record unit details of each phase of housing commenced and completed. As such, these figures reflect a true measure of housing activity and are not based on proxy measures such as ESB connections or BER certifications.
So far in 2023, our researchers have seen volumes consistent with 2022 lodged for planning. It is difficult to predict how many large-scale applications will be submitted through the Large-Scale Residential Development (LRD) initiative. To address and contribute to the government’s ambitious housing delivery targets, we anticipate an increase in both unit commencement and vital delivery of much-needed housing. Despite the numerous external factors mentioned earlier in this piece, we anticipate that residential construction output will remain stable in 2023.
Information is correct as of 01 February 2023. For more details on Residential Project information and Analysis, please visit www. cisireland.com or call 01 299 9200 to speak with the CIS research, sales and insights teams.
Construction Information Services (CIS) is Ireland’s leading provider of business intelligence to the construction and allied industries. Founded in 1972, CIS provides comprehensive, researched, verified and real-time information on all building projects throughout Ireland – north and south.
To learn more about Construction Information Services, visit www.cisireland.com