More apartments built in last two years than previous decade

THE number of new apartments completed over the last two years is more than the total number built in the decade to 2021, new figures have shown.

Banking experts said the statistics suggested an increase in social and affordable housing, as well as cost-rental homes, which should ease a highly pressured market.

However, they warned that a declining interest of institutional investors in financing apartments meant continued State financial support will be needed.

The Housing Market Monitor Q4 2023, published by the Banking and Payments Federation Ireland (BPFI), forecasts supply will rise further this year, again largely driven by apartments.

Brian Hayes, BPFI chief executive, said: ‘Today’s report demonstrates that there is continued growth in housing supply with 32,695 completions in 2023, a 55% increase on 2019 levels, prior to the pandemic. The number of completed housing units in 2023 was higher than the total housing supply between 2011 and 2015.’

The report showed apartment completions, which rose by 28% to 11,600 units in 2023, accounted for most of the overall 10% increase in supply last year. They represented over 35% of completions in 2023, up from 16% in 2019.

Mr Hayes noted that the share of apartments is likely to rise as nearly half of all planning permissions approved in 2019-2023 were for apartments (101,883 units).

Most of the apartments had been built for commercial buyers. In Dublin, for example, only 523 new apartments were bought by households in 2023, despite the fact that almost 9,100 apartments were completed during the year.

Apartments accounted for over 81% of the 15,385 housing units under construction in Dublin by the end of September 2023.

‘This suggests that an increased number of projects aimed at social and affordable housing, as well as cost-rental homes, will be coming onstream and should help to free up supply for household purchasers and, in turn, ease the demand pressure from potential home buyers,’ Mr Hayes said.

Housing starts increased by 59% in January 2024 to 357, compared with the same period last year. More than 32,800 units were started in 2023, nearly 22% more than the level in 2022.

Housing starts rose by 59%