A total of €140 billion in public and private funding will be needed to reach the Government’s housing delivery target of 300,000 homes by 2030, according to a new report.
The research, which was launched at a Property Industry Ireland (PII) conference on Thursday, found that in order to reach the annual housing delivery target of 60,000 homes, development funding would need to be increased to an estimated €31.1 billion in annual recycling development capital.
The average development cost of each unit is estimated to be €466,000 according to the report, conducted by Big Four accountancy firm KPMG on behalf of Ibec’s property sector association.
“Identifying the funding sources needed to deliver these homes is only the first step,” said the director of Property Industry Ireland, David Howard, “We also need the right policy measures to ensure Ireland remains an attractive location for investment.”
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Mr Howard said the headline €140 billion figure does not include the cost of providing necessary infrastructure which is “a prerequisite for housing delivery” and would be needed to attract the private investment to fund the construction.
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Within that figure, to support the targeted State and State-supported ownership of 118,300 new social and affordable homes, the Ibec group said the Government would need to spend a total of €50.7 billion over the period.
Reaching the housing delivery targets, the PII director said, “requires certainty, both in the taxation of investment and within the planning system” and welcomed recent measured by the Government in aiding the progress of planning permission applications through the planning system.
“The upcoming Housing Plan 2025–2030 presents a pivotal opportunity to unlock sustainable housing delivery, address affordability, and restore confidence among investors, home builders, renters, and homebuyers alike,” he said.
“The sector is deeply committed to working with the Government to find solutions.”
