Record house building in 2004

FURTHER record house construction involving 67,000 new homes is projected for 2004.

That is equal to the number built in 2003, according to a new report just published.

In 1992 the number of houses built was just 21,000.

Currently, we are far outstripping the level of house construction in other European economies.

However, the housing levels are due taper off within the next few years as supply and demand come more into equilibrium.

Last year’s outturn represented a 5% rise on the previous year, said Michael Webb, managing partner of cost construction management firm, Davis Langdon PKS (DLPKS), publishers of the report.

On the basis of current evidence a further 67,000 new housing units to be built In Ireland in 2004 equalling the 2003 outturn.

Total volume of new construction is set to increase by 1% in 2004 representing the 11th year of continuous growth in the Irish construction industry.

The Annual Review states:

The total output of the Irish construction industry in 2003 was €22 billion, up 0.7% on 2002, making it one of the most important parts of the economy.

General construction declined in volume by 11% in 2003, and a further 3% decrease is expected in 2004.

Civil engineering recorded a 3.5% volume growth last year, with growth of 6% expected to take place this year.

Tender levels experienced a reduction of 3% in 2003 and are expected to show a further reduction of 1%-2% in 2004.

Michael Webb said that 2003 was, surprisingly, not a bad year in the Irish construction industry.

“The strength of the housing market has again continued to surprise us all. Housing was the star performer again in 2003, continuing to be the dominant force accounting for 57% of construction in Ireland.

“In recent years, the continued growth in housing has been sensational.

“In 2003 we built 67,000 new houses, which dwarfs the 21,000 built in 1992,” said Mr Webb.

“At 67,000 homes, that is more than we have ever built in one year in this country, and in per capita terms, is far in excess of anything being achieved in the rest of Europe.”

DLPKS predicts that a further 67,000 housing units will be constructed in 2004, with reductions in volume in 2005 and onwards, as the market achieves equilibrium.