Labour Capacity Increase Needed to Deliver New Homes
According to the Banking and Payments Federation Ireland (BFPI) if the number of new houses which began construction this year are to be completed, there needs to be an increase in labour capacity. In the first 4 months of 2024 30,138 units were commenced vs 32,800 for the entirety of 2023. Indications are somewhat positive as employment in construction has increased from 147,500 in Q1 2020 to 171,700 in Q1 2024. Fewer apartments were finished in Q1 2024 vs Q1 2023 which drove a 12.1% decrease in housing completions.
Dublin Fourth Most Expensive City in Europe to Build
Turner & Townsend’s International Construction Survey 2024 Report shows that Dublin is the fourth most expensive city to build in Europe. At $3,775 per m2 Dublin ranks behind Zurich, Geneva and Munich. On average labour costs across the 15 European Cities surveyed is $68.6 per hour. The Survey also shows that a skills shortage in 79.1% of markets is driving inflation worldwide.
