Real Cost of New Apartment Delivery

The Real Cost of New Apartment Delivery 2025 report dives into the cost of building apartments in Ireland, identifying the role that apartment design, costs, and government subvention can have on the viability and affordability of delivering units to the Irish market. The report highlights that with government subvention (such as Croí Cónaithe and the reduction in VAT), apartment units across different specifications and locations, as well as different delivery types (e.g., Build to Sell and Cost Rental), can be viable. Suburban apartment categories remain challenging, experiencing the highest inflation across the case studies (2021 vs. 2025), while Build to Rent delivery types lack available subvention measures to move the dial towards viability. Affordability also remains a challenge in the current market, limited by price ceilings of support schemes such as Help to Buy and the First Home Scheme. According to the research, only those within the 6th and 7th deciles of Irish income earners could afford to buy or rent an apartment unit, while Cost Rental units do a positive job at achieving affordability within the 4th decile of income earners and above.

Key findings of the report:

Cost Viability: Without state supports, only two of the lower-priced apartment types were viable for a two-bedroom unit. Availability of government subvention increased this to five out of the six apartment price ranges becoming financially viable. Government subvention is also shown to be positive in affecting the viability of Build to Sell units, but less impactful for Build to Rent units.
Affordability: A first-time buyer couple would need approximately €108k to €146k to afford a two-bedroom unit within the specific apartment categories. Affordability across unit types typically averaged between €124k for a private rental unit and €95k for a Build to Sell unit, while Cost Rental was approximately €79k on average.
Design Change Impacts: The introduction of new apartment design guidelines was tested against a standard-designed apartment unit block to identify the potential impacts of the change on affordability and viability. The overall impact was slight, with the decrease in cost offset by decreases in revenue from the decreased number of three-bedroom units compared to the pre-design apartment block.
Recommendations: Extend levy waivers, introduce Brownfield Remediation Relief, and create a National Housing Bond to boost supply and affordability.