Builders return to residential sites eager to make up lost ground

Full reopening of all construction sites will not take place until May 4 at the earliest
Builders return to residential sites eager to make up lost ground

The Government has allowed construction activity to resume for residential and early learning and childcare projects. Picture: Eamonn Farrell/RollingNews.ie

The construction industry has returned to residential building sites eager to make up for months of lost ground due to Covid restrictions.

The Government allowed the activity to resume on Monday for residential as well as early learning and childcare projects as part of the first phase of lockdown easing following more than three months of level 5 lockdown.

The Construction Industry Federation (CIF) welcomed the reopening of certain sites but maintained its call for the remainder of the sector to be allowed to operate.

"We are delighted that the residential sector has reopened but there is disappointment that commercial and other sectors are still in lockdown," said Conor O'Connell, director of the CIF Southern Region. 

However, we are looking forward with optimism. In the residential sector, our members are reporting significant demand for homes. 

"The supply has been disrupted due to Covid and the extent of that disruption is unknown."

Mr O'Connell said the pace of residential construction for the remainder of the year would be significant, spanning private, social, and affordable homes.

The Government has said the remainder of the construction sector can fully reopen on May 4 subject to the prevailing public health situation.

Despite the impact of restrictions on the construction sector, the sentiment among builders and developers has reached a two and a half year high with some firms taking on staff in anticipation of loosening restrictions.

The sharp reduction in construction activity had continued into March, according to the latest Ulster Bank Construction PMI, with reductions in activity seen across housing, commercial, and civil sectors.

'Upbeat about recovery'

“Despite what has undoubtedly been an exceptionally weak start to the year, survey respondents are becoming increasingly upbeat about the prospects for recovery," said Simon Barry, chief economist with Ulster Bank.

"The future activity index jumped again in March to stand at its highest level in two and a half years as almost 60% of firms expect an expansion of activity over the next 12 months."

Separately, 23 land sales were recorded in Ireland in the first three months of 2021, achieving €110m in sales, according to the latest figures from Property consultants CBRE.

Robust opening quarter

As Ireland's residential construction sector returned to sites following the lifting of Covid-related restrictions, the CBRE report highlights a robust opening quarter to 2021 despite the impact of the pandemic.

The land sales, both on- and off-market, were only marginally behind the €112m value of sales recorded in the first quarter of last year. 

"The impact of the pandemic on land sales has been keenly felt but this quarter shows encouraging signs that the market is returning to more normalised trading despite ‘lockdowns’," said senior research analyst at CBRE, Colin Richardson.

"As the economy potentially opens up in the latter half of the year, we expect to see more stakeholders pick up their engagement levels around sites and transactional activity is likely to continue to tick up."

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