Ireland is set to record the highest rate of new housing completions among 19 European countries this year, achieving a level 80% above the European average. Forecasts suggest completions per 1,000 people will reach 5.9 in 2024, rising to 7.0 in 2025. Despite challenges such as material costs and workforce shortages, Ireland's construction sector is expected to grow, with total output projected to increase by 1.4% in 2024 and 6% in 2025. Employment demand in the construction industry remains strong, with roles such as site managers and engineers among the most sought-after professionals.
Ireland is predicted to achieve the highest rate of new housing completions among 19 European nations this year as it strives to meet its housing goals. Data from the EY-Euroconstruct monitor indicates that housing completions in Ireland will reach 5.9 per 1,000 people in 2024, increasing to 7.0 in the following year. These figures are projected to be over 80% higher than the European average this year and 127% above the average in 2025. Overall construction output in Ireland, encompassing residential, non-residential, and civil engineering projects, is expected to grow by 1.4% in 2024 and by 6% in 2025, the highest growth rate across the Euroconstruct area.
Separate figures from the Central Statistics Office (CSO) reveal that just under 9,000 homes were completed in the third quarter of this year. In the first nine months, 21,643 homes have been built, marking a 3% decrease compared to the same period last year. To tackle the persistent housing shortage, various State and non-governmental organisations have set annual targets of constructing between 30,000 to 50,000 homes. According to EY-Euroconstruct, Ireland is projected to deliver approximately 32,000 homes in 2024, increasing to 38,000 in 2025 and 40,000 by 2026.
Annette Hughes, director at EY Economic Advisory and Euroconstruct member, attributed the housing delivery efforts to multiple factors, including policy measures aimed at accelerating home construction, reducing building costs, reallocating sector resources from commercial to residential projects, and an improving but still challenging interest rate environment.
However, she also acknowledged a slight downgrade in 2024 forecasts compared to projections made earlier this year. She cited delays stemming from infrastructure bottlenecks, funding and staffing issues, and viability concerns as contributing factors. For the broader construction sector, the outlook remains mixed due to persistent inflation in building materials, which, though easing, continues to affect project pricing. Excluding residential construction, the sector's output is forecast to grow by 3.3% in 2024 but moderate to 0.8% in 2025 due to reduced demand for new office buildings.
Separately, the construction industry has emerged as one of the most in-demand sectors for employment. Data from Irish Jobs highlighted that site managers topped the list of sought-after professionals, with a 39% increase in demand over the past year. Other highly sought roles included site engineers, project managers, and senior site engineers, with quantity surveyors and electricians also ranking among the top professions. The IrishJobs Jobs Index, released earlier, indicated that the construction sector is beginning to surpass the IT industry in generating new job vacancies.
Ireland's construction sector demonstrates remarkable resilience as it leads Europe in housing completions and sustains employment growth despite ongoing challenges. Forecasts point to an increase in new housing completions and broader construction output, underscoring the sector's critical role in addressing the country's housing crisis. Although infrastructure and workforce constraints persist, government policies and industry efforts are steering progress. Employment trends also reveal a rising demand for skilled professionals, positioning construction as a key driver of Ireland's economic and social development.
Advertisement
Facebook
Whatsapp
