Construction BUSINESS

Over 230 new houses have been completed across Galway so far this year, while a further 185 are under construction. Galway city showed the most dramatic increase in the country in terms of house construction between January and March this year, with work starting on 58 new units – compared to just two in the same period last year. About 130 new individual homes had been completed in the city and county by March, along with 52 scheme houses and 20 apartments.

According to the Construction Industry Federation, around 18,000 new homes will be built by the end of 2017 across the country. Some economists are saying that as many as 35,000 new homes may be needed to be built each year to start to meet the current pent-up demand.

Data from the Irish Banking and Payments Federation Ireland shows that in Q1 2017, 6,939 mortgages were drawn down, an increase of 14% on Q1 2016. According to the CIF, the construction industry is responding with new housing supply, which will ultimately assist in easing the pent-up demand. However, it must also have certainty around investment decisions, a collaborative construction environment and the time to bring forward new supply to market.