Homebuilder Glenveagh has reported that its revenues rose by 36% to €649m in 2022 as a result of a 50% increase in sales of suburban homes.
The company closed sales for 1,354 suburban units at an average price of €330,000 in 2022, up from 902 units at €308,000 a year earlier. The group said it had made an operating profit of €70m, up 38% on 2021.
Looking ahead, the company said it has a forward order book of 408 units contracted or reserved for 2023.
During 2022, Glenveagh acquired nine new suburban sites for a total of €34m. It expects to deliver 1,150 units on those sites in the coming years, but suburban completions are expected to be unchanged in 2023 due to planning delays.
Glenveagh CEO Stephen Garveycommented,”The strong underlying demand in the Irish market continues to be driven by a combination of a robust economic environment, a fast-growing population and increasing levels of inward migration. This is putting further pressure on what is an already undersupplied housing market. Addressing this significant undersupply continues to be obstructed by dysfunctional planning policy.
“The government’s demand-side initiatives have been supportive most notably for first-time buyers. The increased recent focus on planning system reform is also to be welcomed and is an important first step to alleviate near-term planning gridlock.
“However, we would now strongly encourage that planning policy reform is expedited to solve the longer term structural supply issues the sector faces.”
Garvey further commented that the company has made good progress across the business in 2022 and continues to focus on scaling its operations to deliver high-quality, sustainable homes.
“We have delivered strong suburban unit growth and have actively de-risked our urban land portfolio,” Garvey continued. “We have also advanced our off-site manufacturing capabilities and look forward to using our sustainable and innovative manufacturing technologies to deliver for Irish homebuyers in the years to come.”