Demand for apartments 'higher' than for houses, says head of building firm

On average, Cairn Homes sold each apartment for €380,000 - up from €377,000 year-on-year - while the average home sold for €417,000 - down from €427,000

Michael Stanley, chief executive of Cairn Homes, said the delivery of apartments is not meeting the demand that is out there. 

The chief executive of one of the country’s largest homebuilders has said the demand for apartments is as high as it is for three-bedroom semi-detached homes as the company posts an operating profit of €150m for the 2024 financial year.

The company said that 66% of the 2,241 units it sold last year were apartments - compared to 41% during 2023 - while the proportion of units sold that were homes dropped to 21% from 43%. The remaining 13% of units sold last year were duplexes.

Michael Stanley, chief executive of Cairn Homes, said there is “equally, if not, higher demand for apartment developments in Ireland today, as there is for three-bed [semi-detached homes]”.

“Unfortunately that is not being delivered,” he said.

Mr Stanley said while their apartment deliveries were strong last year, they expected it to move back towards 50% over the medium term.

On the potential for further apartment deliveries across the country, Mr Stanley said there are about 30,000 units across the country that are “fully consented” but have not yet been commenced.

“About half of them are going to lapse within 12 to 18 months,” he said, adding that the consent for these should be extended while the new planning regime is implemented. He said: “Why would you allow them to fall off a cliff?”

According to Cairn Homes, their average selling price during the year stood at €383,000 which is down slightly from €389,000 in 2023, reflecting higher sales of apartments.

On average, each apartment sold for €380,000 - up from €377,000 year-on-year - while the average home sold for €417,000 - down from €427,000. The average duplex sold for €339,000 - up from €319,000.

Mr Stanley said that house price inflation for new homes was 5% but the overall market saw inflation of around 9%.

“New homes inflation was lower and we've got to continue to try and drive that down. Houses are too expensive for young people,” Mr Stanley said.

During 2024, Cairn Homes generated revenue of just under €860m - up 29% compared to 2023 - while its costs of sales totalled just under €673m. This resulted in an operating profit of €150m.

As of the end of the year, the company had inventories valued at €862.1m, down from €943.4 million at the end of 2023. This included €615.7m in land held for development and construction work-in-progress of €246.4m.

Housing market

On the overall state of the residential construction market, Mr Stanley said he believes that there is enough capacity to build 60,000 homes a year if issues are addressed.

"It's about parallel solutions. It's about all of the things working together. The capacity is there, the materials are there, the labour may need to, over time, be boosted,” he said.

In its outlook, the company said it expects 2025 to be a strong year with revenue forecasted to grow by 10% with an operating profit of €160m.

The company said that it has 1,659 closed and forward unit sales for 2025 valued at €617m with 934 additional forward sales across 2026 and 2027 valued at €372m.