"In many cases, certainly in and around Dublin, they cost more to construct, when you take in all the costs including the land, than you can actually sell them for," said Bryn Griffiths, vice-chair of the quantity surveying group within the Society of Chartered Surveyors Ireland (SCSI). This statement highlights the pivotal issue in Dublin's construction market, where escalating costs hinder feasibility.
"There's definitely a viability equation that isn't stacking up. It wasn't helped by the interest rate increases in the last few years. From a construction-cost point of view, we saw rapid inflation in 2021 and 2022. That has cooled, but it is still going up. What it isn't doing is falling." Here, Mr. Griffiths emphasizes the compounding factors affecting construction viability, namely interest rates and persistent inflation.
A study published by the SCSI last July noted the cost of building a typical apartment in Dublin was €2,363 per square metre, just over €300 higher than the average across 10 European cities surveyed. Only Zurich was more expensive. This statistic starkly illustrates the relative cost burden of constructing homes in Dublin compared to other locations.
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