33,450 homes may be built here in Ireland in 2024 – Euroconstruct
A new analysis has estimated that around 33,450 new homes could be completed here next year.
The research also predicts that around 31,000 will be finished this year.
The study by independent construction market forecasting network, Euroconstruct, says construction output in Ireland is likely to expand by 3.2% this year.
This will rise to 4.4% next year, it says, the strongest rate of growth among 19 European countries analysed.
The data is being released as Euroconstruct holds its 96th conference at EY Ireland in Dublin.
The analysis finds Ireland is the only country where housing growth is forecast to be strong next year, rising 7.9%.
Civil engineering here will expand by 2.4% this year and 5.3% in 2024, with the non-residential sector growing by 2.9% in 2023 and 2.6% in 2024, it says.
“In what is a very challenging period for construction activity across Europe, Ireland is bucking the trend with strong growth forecast over the next number of years, particularly in the residential and civil engineering sectors,” said Annette Hughes, Director at EY Economic Advisory and member of Euroconstruct.
“While the forecast for Ireland is bright, there are a number of areas where focus needs to be maintained.”
“It is welcome that construction inflation is beginning to moderate, however the sharp rise in interest rates and the cost of capital remains a significant concern. Moreover, skills shortages continue to be an issue across the construction sector.”
Across Europe, construction activity as a whole is expected to fall by 1.7% this year and 2.1% in 2024 amid economic uncertainty, rising interest rates and reduced credit.
13 countries forecast a decline in the coming year in housing completions, with marginal growth expected in Switzerland, Slovakia and the UK, and modest growth in Spain and Portugal.
By 2025, the number of housing completions across the 19 countries examined is forecast to fall to 1.51 million units, the lowest figure since 2016 and substantially below the 2.61 million units delivered in 2007.
Non-residential building is forecast to be the weakest of the sectors across this year and next, before returning to modest growth in 2025.
However, the civil engineering sector will expand from 2023 to 2026 across Europe, driven by strong public investment in infrastructure and ongoing investment in renewable energy and telecommunications infrastructure.