The costs of rebuilding a home after a fire or a major flood — yardsticks used by insurance firms — is at least €227,440 in some areas, up 5.5% in the past year, and far in excess of inflation, according to surveyors.
The Society of Chartered Surveyors Ireland said its annual survey showed the hikes were driven by the rising costs of regulation in the building industry, which is ramping up to meet the huge demand for new homes.
“The construction sector is experiencing high demand and this increase in activity is having an inflationary effect on prices,” Mark Bourke, of the surveyors’ group, said.
“Next year will see the introduction of amendments to heating and ventilation requirements for new builds and it’s expected that these will also have a further impact on prices, although the new regulations are expected to reduce heating costs and should be positive in the long-run,” said Mr Bourke.
In Dublin and Cork, the minimum rebuild costs are €227,440 and €182,427, respectively, but homeowners need to include costs of €30,000 to rebuild garages, kitchens, built-in wardrobes, and floor finishes. The costs are based on rebuilding “a standard, three-bedroom,” semi-detached house of 1,023 sq. ft, or 95 square metres. Galway’s minimum rebuild costs are the next most expensive, at €180,381.
Waterford and Limerick homes cost €174,243 and €177,312 to rebuild.
Costs vary between regions.
The north-west rebuilds are €153,783, while the north-east is among the most expensive, at €185,496. “Homeowners need to check the ‘sum insured’ on home insurance premiums to ensure they are fully covered and not over or underpaying,” the surveyors said.