Residential developments quadruple

The number of residential developments has more than quadrupled since the low point of 2011, with the majority of large-scale developments concentrated in the capital.

In the first eight months of the year, 290 residential developments — 127 of which are based in Dublin — have commenced, compared to just 70 in the same period three years ago when the construction sector was at its lowest ebb and house-building all but came to a halt.

The increase means that such developments account for almost 6% of residential projects in the country — up from just below 2% in 2011, according to the National Housing Construction Index compiled by Link2Plans.

Consequently, the percentage of self-build projects has fallen back slightly to 48% of residential construction activity, while home extensions have dropped to 44% of the total.

Link2Plans managing director, Danny O’Shea said the results indicate a continued recovery in the construction sector after a dearth of activity in recent years.

The triple figure growth in the number of project commencements recorded in the first four months of the year has predictably levelled off to more sustainable levels, according to the latest index compiled of local authority planning and project information.

To date this year, project commencements nationally are up 40% on the same period last year with the number of new planning applications up 12%.

“The 40% year-on-year increase in project commencements is still an extremely strong result and good news for the residential construction sector,” said Mr O’Shea. “There were certain factors at play which resulted in project commencements being up 132% for the first four months of 2014..

“In particular, the March 1 deadline before which projects had to be started to avoid being subjected to the new Building Regulations.”

The largest annual gains for project commencements took place in Monaghan (+115%), Cork (+79%), Westmeath (+63%), Donegal (+63%), and Sligo (+60%). For the first time in 2014, three counties saw the number of project commencements fall with Longford (-20%), Roscommon (-3%) and Leitrim (-3%) all showing a decrease.