There were 14,932 new homes completed in 2016, an 18% increase on 2015 and the highest since 2009, but the figure falls way short of the 25,000 homes per year currently needed to be built in Ireland. Of the new homes completed in 2016, 6,289 were in the greater Dublin area.
Commercial vacancies in Ireland rose by 0.9% in Q4 of 2016 to 13.5%. Of the 213,666 commercial properties in Ireland, currently 28,796 are vacant. In Dublin the highest vacancy rate was D.17 at 19.2%, with Dublin 16 the lowest at 7%. Countrywide, Sligo is the highest at 18%, Leitrim at 16.4% and Galway at 15.4%. Vacancy rates increased in 25 of the 26 counties in 2016. Of 101 locations analysed, with 79 of these being towns, Edenderry in Offaly had the highest vacancy rate at 31%.
Residential development land is expected to increase by up to 15% in Dublin in 2017 and by up to 11% outside of Dublin as developers are expected to commit to building more housing developments, due to the relaxing of the Central Bank rules and the ‘help-to-buy’ scheme introduction. This is according to the SCSI 2017 outlook.
60 construction cranes were in operation in Dublin on 1st Feb 2017 an extra 2 from December’s reading for 58 and a massive 26 extra for the same date in 2016. The south-side had 52 of these cranes.
Sherry Fitzgerald released their 2016 residential property review. Some main points:
Price inflation in Dublin was 3.7%
Second-hand house prices rose by 5.2%
Rental increase of 8.6% occurred on an annual basis
Hines, the US developer has begun work on their new urban centre in Cherrywood, south Dublin. The 412-acre site will eventually hold 8,000 homes and anew town centre, along with retail and office units. It is expected 3,000 people will be employed throughout the work.
January saw the 41st month in a row where output has increased. The PMI was 55.7 for January. There was a near-record reading for new jobs with the last time workloads rose that fast being November 2004. Input cost inflation grew at its fastest level for 10 years due to cost pressures in the building industry. Civil Engineering however decreased for January.
A Standard & Poor’s report suggest that it could take the Irish property market a further decade to attain supply and demand equilibrium. S&P predict 7% inflation for 2017 and 5% for 2018.
Bennet Construction reported a 36% increase in turnover to the year end of 31 March 2016. Revenue increased to over €131.2m for 2016 compared to 2015 when turnover was €96.3m (which was a rise of 18.5% on 2014).
The construction sector in 2016 saw an increase of 11,600 take up work in the industry (9.2%).
A Standard & Poor’s report on housing in Ireland states that property prices will rise 7% in 2017 and 5% in 2018 due to shortages in supply.