Report shows how much planning, finance and VAT adds to cost of building Dublin houses

Report shows how much planning, finance and VAT adds to cost of building Dublin houses

The cost of delivering new homes in Dublin ranges from more than €330,000 for a two-bed townhouse to more than €460,000 for a two-bed apartment.

That is according to a report for Irish Institutional Property, a lobby group for institutional investors.

It said construction costs alone for a two-bedroom house in Dublin city or suburbs are €158,000.

However, this rises to a final cost of €330,000 when the likes of planning, finance and VAT are added.

For apartments, construction costs are higher at €225,000, due to more onerous requirements around foundations, parking, provision of lifts etc.

These rise to more than €300,000 when legal, planning and finance costs are included.

The addition of VAT, levies and equity sees the final cost rise to over €460,000.

CEO of Irish Institutional Property, Pat Farrell, said: “When discussing housing policy, and proposing solutions to the housing crisis, it is important to be aware of the facts. Our report spells out the components of the price of housing, why prices are high, and the costs that need to be tackled to reduce prices for buyers.

"We hope that the data will help drive an informed debate on the issue and mitigate against some misunderstandings about the realities of home building here. Some recent commentary, and some proposals on how best to drive the delivery of a greater number of homes, are based on an improper understanding of these realities.

"Indeed, some proposals in the public domain would result in a reduction in the number of new homes delivered, which is something nobody would welcome.”

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