Appetite for apartments outstrips houses in 2020

The new student accommodation at Victoria Cross in Cork, next to County Hall, with the fire damaged St. Kevin's builiding on the Lee road in the background. Picture: Eddie O'Hare

Apartments, powered by student accommodation demand, overtook houses when it came to planning permission being granted for new builds last year, while the green light for new homes overall grew by 13.5%.

Central Statistics Office (CSO) data shows  planning permissions were granted for more than 26,000 apartments in 2020, compared with about 19,500 in 2019, an increase of just under 34%.

The downward trend of planning permissions granted for houses, which fell in 2019 for the first time in seven years, continued last year with 18,300 greenlit, a drop of almost 7%.

Overall, planning permissions were granted for just over 44,500 dwelling units in 2020, compared with about 39,200 in 2019, the CSO said.

The appetite for apartments in 2020 was the highest in 15 years, the CSO said, although numbers are still lower than the peak of 32,000 apartments granted in 2004, at the height of the Celtic Tiger.

Dwelling unit approvals up 13.5% in 2020https://t.co/Bae7fF6nQm #CSOIreland #Ireland #Housing #HousingConstruction #HouseBuilding #NewDwellings #PlanningPermissions #IrishBusiness #BusinessStatistics #BusinessNews pic.twitter.com/pwBStVJuFh

— Central Statistics Office Ireland (@CSOIreland) March 12, 2021

Dublin remains overwhelmingly favoured for planning for apartments, with just under three-quarters of all units.

The Strategic Housing Development process, where applications for developments of at least 100 residential units or 200-plus student beds can be made directly to An Bord Pleanála, accounted for the vast chunk of apartments. 

Of the 26,000-plus apartment units granted planning permission in 2020, just under 20,000 were for students and strategic housing.

Property Industry Ireland (PII), the Ibec group that represents businesses in the property sector, said the latest planning permission data "shows the importance of the Strategic Housing Development process in the delivery of much-needed housing supply".

PII director Dr David Duffy said: "Over 58% of permissions were granted through this process. We urge Government to extend this scheme."

Improving the viability of homebuilding and removing barriers is key to speedy delivery of new homes, he said.