Construction hits €5.6bn value but new homes lag

This article originally appeared in The Irish Independant

The value of new construction projects in Ireland surged 68pc last year as activity in the sector continued to pick up

Margaret Sweeney of Women for Europe (and Chief Executive of Postbank)


According to a new report from Construction Information Services (CIS) which measures activity in the property sector, builders broke ground on 2,213 new projects worth €5.6bn during 2015. That is a huge increase on 2014's 1,437 projects.

But the number of new homes being built is far below the levels needed to ease the housing crisis, with less than half the number of new homes needed being built at present.

The report, which excludes projects such as one-off housing or fire safety certificate work, tries to quantify big ticket projects around the country.

Perhaps unsurprisingly the Dublin area dominates.

The CIS data shows the city and its surrounding area accounted for an estimated 53pc of all projects. That percentage fell slightly though year-on-year, in a sign that the recovery is starting to be felt beyond the city.

In 2014, 56pc of new projects were being carried out in Dublin. Its dominance continues in the value of new projects for which planning permission is being sought, but again, the proportion is lower than this time last year. About 54pc of the value of all projects that received planning approval were located in Dublin during 2015 - down from 63pc in 2014.

The CIS noted that this change "can partly be explained by the Project Cherrywood application, so when total number of projects are looked at, this statistical skew can be seen".

US investment giant Hines submitted plans for a €2.5bn development at Cherrywood in west Dublin.

The figures show that residential development jumped 150pc during the previous 12 months, with projects worth €1.5bn on site now. But construction is still far behind what is needed in the country to ease the housing crisis.

The data shows that 4,706 houses went "on-site in 2014 and in 2015, house building increased to over 11,000". Most analysts estimate the country needs about 25,000 new homes every year to meet demand. But even the new projects are moving forward slowly. Many going on site this year are doing so on a phased basis only and are not all coming on stream immediately, the CIS said.

The crisis shows no sign of improving. "It is anticipated that approximately 12,000 units will be built in 2016, which is less than half of that required to meet normal demand," the CIS said.

Meanwhile former Dublin Airport Authority chief executive Margaret Sweeney, inset, has joined IRES Reit as a non-executive director. Ms Sweeney is also a former head of PostBank. She was president of the Dublin Chamber of Commerce from 2008 to 2009.

IRES has also named Phillip Burns as a non-executive director. Mr Burns is the founder of Maple Knoll Capital and was CEO of Corestate Capital as well as being a senior executive with private equity giant Terra Firma and Goldman Sachs.

He was also a corporate attorney at the giant US law firm Skadden Arps.

Elsewhere, IRES chief executive David Erhlich took home €753,000 in pay and bonuses last year as the listed property firm ramped up its property purchases in Ireland.

The company is the biggest private landlord in the country.

Construction hits €5.6bn value but new homes lag

How To Solve The First Time Buyer Mortgage Maze !

For first time buyers the mortgage process can seem complex and confusing.  On top of everything else you need to figure out interest rates, loan terms, fixed versus adjustable rate mortgages and much more.  In order to simplify and streamline the process it is best to do some research before you go and apply for a mortgage. Recommendations and endorsements in any sphere of life are always a good way to start so do your homework. There are a vast amount of financial institutions offering a vast array of mortgage products so contrast and compare.

Be In The Know 

You will need to have some cash in the bank before you can buy a home and many first time home buyers are surprised at the amount.  There are other financial factors to be taken into account not just your savings record.  Of course proof of your ability to save and thus in the future repay your mortgage is important but this only one component. Check your credit history i.e. repayments of previous loans to make sure that there are no issues from the past.  Financial institutions will take into account your current earnings but also into consideration what effect any change in your personal circumstances may have on your repayment capacity.

Plan For Out Of Pocket Expenses 

Once you have selected your chosen property and successfully gone sale agreed other additional costs will include a solicitor to handle the conveyancing on your behalf.  In most cases a structural survey will have to be carried out on the property by a Quantity Surveyor or Architect which you will have to pay for.  An independent valuation on behalf of the lending institution you are getting your mortgage through is obligatory and the fee involved has to be paid by you too.

So don’t forget the additional costs that can sometimes be overlooked and then cause a lot of stress. Moving of furniture budgeted in advance will make your closing date when you will finally get the keys of your new home a day to enjoy.  To avoid  stress plan well in advance and have the additional kitty close at hand so that your home purchase will be one of the best days of your life.

Enjoy The Experience

When it comes to buying your first home it can be a very exciting as well as a nerve wrecking time. By doing your research and preparing yourself for the process you can ensure it goes more smoothly and ensure you do not run into any nasty surprises.  Once you get that mortgage approval in principle letter from your chosen lender you can then start the fun part of searching for your first home!

Learn More

How To Present Your Property In The Best Light !

Whether it is a romantic dining room or a home office finding the right lighting for each space in your home is essential in making it functional and inviting.

So what should you consider when choosing lamps or lighting fixtures to ensure that they will provide the right kind of light while still fitting in with the décor of the room?

Function Before Fashion  

Naturally you want your lighting choices to match and complement the décor of your home. If they are not the right functional choice for the space your initial infatuation with them will likely fade.

For work spaces such as kitchens be sure your lighting will provide ample brightness while also being easy on the eyes.  For rooms such as the living room or dining room you'll want to consider lighting sources that are adjustable to allow for relaxation and a romantic atmosphere.  It is important to remember that these areas will also be used for work and play so they should also provide adequate light.  Be sure to consider the financial and environmental impact of the type of lighting you use. Using energy efficient bulbs and dimmers can reduce your carbon footprint and your electricity bill.

Size Matters!

If you have a small dining room then choosing that large ballroom sized chandelier you fell in love with may not be the best idea.  Recessed lighting for a large foyer while functional can make the space feel cold and uninspired.  Always make sure that the fixtures or lamps you choose are proportional to the space as this will make the room look well designed.

Using Light As Decoration

While choosing lighting requires balancing form and function lighting can also be a great way to highlight existing features in a room.  Whether it is a painting or mirror over the mantelpiece or a unique feature using lighting to highlight them can add a finished and dramatic look to any room.

Lighting can really make the difference and all the hard work you put into choosing it will compliment the other décor elements.  It will be well worth the time and effort to truly finish off your property and make it look spectacular!

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How To Make More Space !

If you live in a small home you may face some particular decorating challenges. Getting comfort and style while reducing clutter can be done with a few smart furniture choices and a good understanding of colours.

Keep It Light And Bright 

Dark colours always make a room look smaller so stick to lighter shades for small rooms.  If you absolutely love deep red or chocolate brown there is no reason why you cannot make it a part of your room.  However maybe use it on one wall rather than throughout so that is may be presented as a feature.  Try to choose lighter tones for the flooring and the largest pieces of furniture in the room.

Darker more vibrant colours are perfect for things such as cushions , vases and other decorative pieces.  They will bring those richer colours into the space without overwhelming it and making it feel dark and cramped.

Choose Furniture Carefully 

Save space by making your furniture multi task for you.  Look for coffee and end tables that include storage for books, remote controls, and magazines.  Choose furniture that provides hidden storage where you can stash extra blankets and other items.  If you occasionally need a larger dining room table, pick one with a butterfly leaf that can easily be tucked away when not in use.

Look for an all-in-one entertainment unit for your television and components that will allow you to tuck things away out of sight to prevent clutter.  A unit that includes storage for DVDs and CDs provides even more use but watch out that the piece is not so large as to dwarf the room.

Walls And Windows Are Important Too

Putting too much on the walls contributes to the feeling of clutter.  So it is best to keep it simple and only showcase a few favourite paintings.  It is recommended not to have to many family photos on view and don't hang too many photos in one place.

If possible choose sheer or semi-sheer window coverings in light colours to allow more light into the room.  Dark heavy curtains will contribute to the small and claustrophobic feeling small spaces can too easily have.

Small spaces can be just as elegant as large ones and feel a lot bigger than they are if you make smart decorating choices.  Make the best use of all your square footage and keep it light and airy for the best results.

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Council raises grave concerns about Raheny development

This article originally appeared in The Irish Times

Some 380 houses and apartments sought for lands adjoining St Anne’s Park

Developers Pat Crean and Greg Kavanagh sought permission to build 107 houses and 274 apartments on former playing fields of St Paul’s College in Raheny, Dublin. Photograph: Nick Bradshaw



Dublin City Council has raised “grave concerns” over plans for almost 400 houses and apartments on former religious order lands adjoining St Anne’s Park in Raheny.

Developers Greg Kavanagh and Pat Crean last November sought permission to build 107 houses and 274 apartments on former playing fields of St Paul’s College.

Close to 300 objections have been lodged against the scheme, with most local politicians and election candidates opposing the development.

The council has now ordered the developers to make significant changes to the scheme, including scrapping two of the six blocks of apartments and redesigning others that had the potential to “create areas of anti-social behaviour”. 

It has also expressed concern about the loss of the existing sports facilities and the quality of life of future residents.

The council will not consider the current application and has given the developers six months to resubmit their plans.

Playing fields

Mr Crean and Mr Kavanagh, who describes himself as “the Ronaldo of the property market”, last year bought 15 acres of land, part of the playing fields of the school, from the Vincentian Order.

As part of the deal the developers agreed to provide the school with new sports facilities including a Croke Park-size all- weather floodlit pitch, an all- weather floodlit training pitch and a new multi-use indoor sports centre. 

However, the council said it had “grave concerns” about these facilities and their effect on future residents in terms of noise and light pollution. “The pitch would be floodlit with six floodlights 18 metres in height. The front elevations of the houses would be located 18.4 metres from the pitch fence and lighting poles,” it said.

The developers were also required to provide replacement sporting facilities for nonschool users of the old pitches, the council said, and it queried how Clontarf GAA club would be accommodated, given the “current lack of capacity for GAA in St Anne’s Park”.

The council also said the new school sports facilities could not be considered as satisfying the public open space requirements of the development.

However, the strongest concerns were expressed over the quality of the proposed apartment blocks. The layout of the houses and apartments was unacceptable and needed to be reviewed in its entirety, the council said. Two of the five-storey apartment blocks needed to be omitted and two more were excessive in length and had archways with the potential to create areas of anti-social behaviour.

Development sites 

Mr Kavanagh and Mr Crean, funded by London-based hedge fund M&G Investments, have spent more than €300 million buying development sites in Dublin in recent years, largely at the bottom of the property market. They have applications on hand to build more than 1,500 homes around the city and county, which would make them one of the capital’s largest housing developers. 

Council raises grave concerns about Raheny development

Property market still depressed with sales at 50% below ‘normal’

This article originally appeared in the Irish Times

New research suggests number of property transactions has not recovered from crash   

In Dublin, where demand for housing is strongest, new housing represented 16.9 per cent of all buildings under construction in the State.

Turnover of Irish residential property is barely 50 per cent of what is considered “normal” in a healthy housing market.

According to GeoDirectory, the State’s largest property database, there were just 43,428 residential property transactions last year from a total housing stock of more than two million.

This equates to a national turnover rate of 2.2 per cent, well below the 4-5 per cent considered normal for a functioning property market.

The low transaction rate reflects the current shortage of property on the market as well as tougher credit conditions linked to new mortgage lending rules.

Of the total transactions recorded last year, only 13 per cent represented by new properties while 87 per cent were second-hand property transactions.

Combining data from the property price register and the latest population census, GeoDirectory found Dublin had the highest average transaction price at €356,194, followed by Wicklow (€296,045) and Kildare (€244,543).

Longford had the lowest average transaction price in Ireland at €78,934, up from €75,583 in August 2015, followed by Roscommon at €90,728.

At a construction level, there was only a small number of residential buildings added to the database nationally.

A total 3,957 buildings were classified as being under construction in the GeoDirectory Database in the final quarter of 2015, up slightly on the second quarter number of 3,786.

In Dublin, where demand for housing is strongest, new housing represented 16.9 per cent of all buildings under construction in the State. Building activity, meanwhile, remained slow in Roscommon and Leitrim where fewer than 40 buildings were under construction in each county.

Kildare witnessed a significant increase in the number of buildings under construction, up to 253 buildings final quarter from 19 the previous year.

This might be down to a larger number of people being pushed to move outside the capital by rising house prices, the report said.

According to the GeoView report, Dublin had the highest residential density per square kilometre (572 dwellings per square km) by a large margin. The next highest ranked county, Louth (63), had a substantially lower density, followed by Kildare (47). Leitrim and Mayo (both 12) had the lowest residential densities.

GeoDirectory’s chief executive Dara Keogh said: “We’ve seen a consistent picture over the last two - three years, with demand outstripping supply in the more urban areas, while the market remains sluggish in large parts of rural Ireland.”

Annette Hughes, director of DKM Economic Consultants said: “ The key statistic which the report highlighted was that the national average housing turnover rate in the year to December 2015 stood at 2.2 per cent.

“This rate is showing very few signs of improving and is still well below what would be deemed to be a more normal housing turnover rate of around 4 per cent to 5 per cent,” she said.

A separate report by the Society of Chartered Surveyors Ireland found residential development land values increased in by 19.7 per cent in Dublin, 16.7 per cent in Munster, 15.1 per cent in Leinster and 10 per cent in Connacht/Ulster.

The group anticipates residential development land values in Dublin would increase by around 12.1 per cent this year. 

Property market still depressed with sales at 50% below ‘normal’

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