Home building activity falls by over 4% marking 'hugely disappointing' start to 2025
New figures from the Central Statistics Office (CSO) on Friday show that on an annual basis, a 13.5% increase was recorded in the volume of production in building and construction between January and March.
However, despite the overall rise, the volume in the residential building sector was down by 4.3% at the beginning of this year when compared with the last three months of 2024.
Meanwhile, the volume index for the non-residential building sector rose by 4.4% between the end of last year and the start of 2025. In the same period, the volume index for the civil engineering sector rose by 16.6%.
"On an annual basis, between Q1 2024 and Q1 2025, production volume in construction grew by 13.5%," said CSO statistician Shane O'Sullivan.
"During the same period, production volume in the non-residential building sector rose by 13.7% and was up by 35.9% in the civil engineering sector, while production volume in residential building showed an annual decrease of 10.6%."
The value index for all building and construction between January and May was up by 6.5% on a quarterly basis, while on an annual basis, it was up by 19%.
'While the volume of production in building and construction is up, the 4.3% fall in house building activity is hugely disappointing and a further indication that the government is going to struggle to meet its housing targets this year," said Ian Lawlor, Managing Director of Roundtower Capital
Today's CSO findings follow data released earlier this month showing a decline in the number of homes approved for planning permission in the first three months of 2025.
"2025, unfortunately, has not got off to a promising start for housing delivery," Mr Lawlor continued.
"While the rental reforms recently announced are certainly welcome, the jury is out as to just how effective they will be in stimulating housing supply.
"Other obstacles to increased supply that need to be tackled if the Government is to get more private investors on board include prohibitive development levies, VAT burdens, inadequate tax incentives, limited Public Private Partnership options, and insufficient state support for builders."
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