Goodbody Stockbrokers have reported a significant rise in the initiation of housing projects for the first quarter of 2024, resulting in a fresh peak in this metric since the financial crash. The firm’s most recent assessment of housing commence showed an increase of 67 per cent to 12,297 units. The cumulative total for the preceding year was close to 38,000 units, a figure which surpasses expectations and governmental objectives.
The ‘Housing for All’ strategy, implemented by the government aims to have 34,600 houses completed in this year, 36,100 houses in 2025 and 36,900 in 2026. Goodbody attributes the significant boost in housing projects initiated in Q1 to the impending conclusion of a brief waiver on development levies introduced by the government.
The brokerage firm states that this temporary measure has successfully lowered development expenses and has encouraged housing supply, consequently prompting developers to adopt a more proactive approach to their construction timelines. Goodbody is urging the government to consider extending the duration of this waiver beyond its planned termination, given its positive impact.
Goodbody’s report highlights substantial contributions from both housing schemes, which saw a 56% rise from the previous year, and apartment buildings, which saw a growth of 107%. The BCMS-based data indicates that 41% of the overall quarterly figure was accounted for by apartments.
The greater Dublin region, inclusive of Dublin and the mid-East, was responsible for a dominating 59% of new housing projects initiated in the first three-month period. In the capital specifically, 68% of initiated projects were apartments, but there was also a noticeable uptick in housing scheme commencements.
Despite recent encouraging trends, Goodbody suggests the scale remains insufficient to meet bolder housing objectives. The firm recently drew attention to the potential hindrance posed by the lack of scale below two publicly listed companies (Cairn and Glenveagh) in a report, in terms of the State meeting increased housing needs over the forthcoming years.
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