Irish Construction Industry Magazine focuses in on some of the key points made within the comprehensive Pre-Budget Submission document of the Society of Chartered Surveyors, the Construction Industry Federation and IBEC, respectively.

The Irish economy continues to see strong signs of growth with 4.6 per cent of GNP expected in 2016 and 3.1 per cent in 2017, according to the Society of Chartered Surveyors Ireland’s Pre-budget Submission.  Government published figures in their Summer Statement earlier in the year, outlining fiscal space of between €1.0 and €1.7 billion based on a two-third split between expenditure and taxation. Ireland’s property and construction sectors have only begun to recover in recent years, with a relatively strong revival in urban areas, not yet experienced in many provincial and rural areas. Following the introduction of the Central Bank Macro-prudential policy on mortgage lending, the Irish residential property market, particularly in the Dublin region, has seen a slowing of property price increases.

Whilst this has had the intended effect from a banking risk perspective, it is apparent that the lending restrictions are impacting on the viability of building new residential units. The ESRI has estimated that Ireland needs to build 25,000 residential units per annum.

For a more extensive article see our September/October 2016 Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran