What is the average cost to build a house in Ireland?
Ever wonder what the average cost to build a house in Ireland is?
According to a report ‘Real Cost of New Housing Delivery 2023′ published by the Society of Chartered Surveyors Ireland , the average cost of delivering a new three bedroom semi detached house in a multi unit scheme in Ireland ranges from €354,000 in the Northwest to €461,000 in the bustling Greater Dublin Area.
What’s fuelling house construction costs in Ireland?
The report highlights a 24% increase in costs in the Greater Dublin Area over the last three and a half years – a substantial jump of €90,000. The breakdown:
‘Hard costs’ covering materials and construction surged by 27%, driven by escalating energy prices, fuel, and building material expenses.
‘Soft costs,’ including land expenses, levies, and professional fees, saw a 21% increase, impacting market dynamics.
Housing Affordability Ireland
For a first-time buyer aiming for that three-bedroom semi:
In the Greater Dublin Area, the required combined minimum salary is around €127,000.
Contrastingly, the Northwest offers a more approachable figure at approximately €85,000.
How to solve the housing crisis in Ireland
The SCSI report suggests crucial recommendations to address the housing crisis in Ireland
Support for Modern Construction Methods: Encouraging the adoption of Modern Methods of Construction to bolster efficiency and sustainability in building practices.
Pause Future Increases in Charges and Levies: Advocating for a temporary halt in increasing connection charges and levies to alleviate financial burdens on potential homeowners.
Optimising the Planning Process: Urging a more streamlined planning process, ensuring it’s fit for purpose to minimize risks in development, subsequently reducing costs for homeowners.
Revising Housing Targets Based on Population Growth: Calling for immediate revisions to housing targets, considering Ireland’s population increase since the last census.
Promoting Off-Site Construction: Encouraging the government to set new targets for off-site construction units to optimise resource utilization.
Addressing Planning Permission Viability: Advocating for financial viability assessments within the planning permission process to ensure practicality and sustainability of developments.
Long-Term Policies for Development Levies: Suggesting the continued pausing of development levies as a long-term policy measure to ease financial burdens.
Improving Utility Connection Processes: Seeking enhancements in utility connection processes to reduce costly delays in construction.
Reviewing First Homes Scheme: Urging a review of the First Homes Scheme purchase price ceilings to ensure accessibility based on average market values in each county.
County Cork Property Market
The County Cork property market remains vibrant, with a robust demand for homes. First-time buyers benefit from government supports such as the Help to Buy and First Home Scheme. However, trader-uppers find themselves on the fence due to the challenge of finding alternative homes. Similarly, downsizers face a lack of suitable properties, highlighting the need for houses with downstairs bedrooms to cater to an aging population.
Cork is one of the regions in which financial viability is challenged according to the SCSI report.
Estate Agents Cork.
DNG Galvin are County Cork’s leading estate agents with a track record of selling residential, commercial and agricultural property throughout County Cork for over forty years.
Contact the DNG Galvin team for all your property needs.