Housing construction starts to fall in 2025 and 2026, says report

Ireland’s housing Market: A Tale of Two Trends

Ireland’s construction industry is experiencing a paradoxical situation.While new home construction is booming, a persistent housing shortage continues to plague the nation. This contradictory trend presents both opportunities and challenges for the Irish economy.

Construction Activity Expected to Slow

Despite the current construction surge, experts predict a slowdown in overall construction activity in Ireland during 2025 and 2026.

A Brighter Outlook for Hospitality

One sector that appears to be bucking the trend is hospitality. This industry is showing robust growth and is expected to remain strong in the coming years.

Challenges in the Commercial Sector

In contrast, the commercial sector faces headwinds. Factors like rising interest rates and economic uncertainty are likely to dampen investment in commercial properties.

Construction Investment on the Decline

Looking ahead, construction investment in Ireland is projected to take a significant hit. this potential decline in investment could have far-reaching consequences for the Irish economy.

Ireland’s Housing Market: A Surge in Construction, But Still Short of Targets

Despite a significant increase in new home construction during 2024, Ireland continues to grapple with a persistent housing shortage. The sobering reality falls considerably short of the goverment’s enterprising targets, as highlighted in a recent report by leading industry analysts, Construction Details Services (CIS). The surge in construction activity, while initially promising, underscores the ongoing challenges in meeting the country’s growing housing demands.

Housing Construction Surges,Completion Rates Lag

Recent data points to a surge in residential construction activity,but completion rates are trailing behind ambitious government targets. According to Construction Industry Statistics (CIS), the third quarter of 2024 saw the start of construction on an impressive 55,000 new housing units. This represents a significant increase compared to the 33,000 units initiated during the entirety of 2023.

Completion Rates Fall Short

However, despite this encouraging construction boom, completion rates have fallen short of expectations. By the same point in 2024, only 20,000 housing units had been finished. This lag puts the government’s goal of 33,500 new homes per year in jeopardy. Housing Shortage: Skills Gap a Major Barrier The Construction Industry Solutions (CIS) report highlights a critical challenge facing the housing market: a shortage of skilled labor. This gap in workforce expertise significantly slows down the construction of new homes and drives up material costs. “This shortage is exacerbated by a skills gap in the construction sector, which hampers the speed at which new housing can be developed and the cost of materials,” the CIS report points out.

Irish Government Extends Waiver on Growth Contributions to Boost Housing

In a move aimed at invigorating Ireland’s housing market, the government has announced an extension on a waiver for development contributions. This waiver applies to residential projects that commenced construction by December 31, 2024. The waiver is designed to reduce the financial burden on developers, encouraging them to increase the supply of new homes. By eliminating these contributions, the government hopes to make housing projects more economically viable and stimulate construction activity.

Government Incentives Fuel Residential Construction Boom

The housing market is experiencing a surge in residential construction activity, largely attributed to the success of government incentives, according to Allan Wilén, economics director at CIS. Wilén highlights the development contribution waiver as a key driver, noting that it has “created a front-loaded pipeline of activity, reflecting renewed confidence in the housing market.” However, Wilén cautions that maintaining this momentum will be a challenge once the incentive program expires. He emphasizes the need for sustainable strategies to ensure continued growth in the housing sector beyond the initial boost provided by government support. “This policy has created a front-loaded pipeline of activity, reflecting renewed confidence in the housing market. Though, the challenge will be sustaining this momentum beyond the policy’s expiration,”
The statement underlines the delicate balance between incentivizing construction and fostering long-term market stability.

Irish Construction Facing Potential Slowdown in Coming Years

Industry experts are predicting a potential slowdown in Irish construction activity over the next couple of years. The anticipated dip is expected to begin in 2025 and continue into 2026.

Irish Construction Boom Followed by Predicted Slowdown

Ireland’s construction industry is bracing for a notable slowdown in 2025 and 2026,following a surge in activity during 2024. A recent report by Construction Data Services (CIS) highlights this upcoming shift, attributing it to a trend known as “front-loading”. Front-loading occurs when a large number of projects begin simultaneously early in a construction cycle.this initial surge inevitably leads to a decline as the pipeline of projects begins to dry up. While 2024 is expected to see an “unprecedented” number of construction starts, industry professionals and analysts anticipate a significant contraction in the following two years.

Construction Starts Predicted to Decline in 2025 and 2026

The construction industry is bracing for a potential slowdown in the coming years. according to a recent report by the Construction Industry Solutions (CIS), a significant drop in construction starts is anticipated for 2025 and 2026. This prediction is attributed to a combination of factors, including an early surge in supply and a decrease in pipeline planning activity. The CIS report indicates that this “front-loading” of supply,coupled with reduced long-term planning,is likely to have a considerable impact on the number of new projects commencing in the next couple of years. However, the report suggests that this decline is expected to be temporary, with construction starts projected to recover and stabilize in subsequent years.

“This ‘front-loading’ of supply coupled with lower levels of pipeline planning looks likely to have a significant impact on commencements in 2025 and 2026 and as such we foresee a significant decline‌ in ‍starts in these years before recovering to more‌ stable rises in future years,”

—CIS Report

Irish Construction: Smaller Projects Face 50% Drop in 2025

A new report paints a picture of a shifting landscape in Ireland’s construction sector. While larger developments continue to move forward, the number of smaller projects getting underway this year is expected to see a significant decrease. The report predicts a 50% drop in the number of construction projects valued below €100 million that will commence in 2025. This downturn signals a potential slowdown in the segment of the market focused on smaller-scale buildings and infrastructure projects. ## Construction Activity Cools Down After Record-Breaking Year The construction industry is experiencing a slowdown in early 2025 after a banner year in 2024. The value of new construction projects launched soared to €13.4 billion by the end of the third quarter of 2024,surpassing the €11.6 billion recorded for the whole of 2023.

Construction Sector Sees Mixed Trends: Hospitality Emerges as a Bright Spot

While the construction industry overall has witnessed a dip in projects valued under €100 million, a notable exception to this trend is the hospitality sector.despite the broader slowdown, hotels and related projects are experiencing continued growth.

Travel Industry Booming: A Look at the strong Hospitality Sector

Despite economic challenges, the travel industry is showing remarkable resilience.The hospitality sector, a key player in this landscape, continues to thrive, demonstrating its adaptability and enduring appeal.

Occupancy Rates Soaring

Hotels and othre lodging options are experiencing impressive occupancy rates,indicating a strong desire among people to explore and experience new destinations. This buoyancy in travel demand bodes well for the future of the industry. This positive trend is not confined to specific regions; rather, it reflects a global enthusiasm for travel and hospitality experiences. The hospitality industry is poised for a promising future, fueled by robust consumer spending and a growing appetite for travel and leisure experiences.

“With strong consumer demand and spending on the rise, we anticipate continued investment in the hospitality industry,” said CIS.

This positive outlook suggests that hotels, restaurants, and other hospitality businesses can expect to see increased investment and growth in the coming years. As consumers continue to prioritize experiences and travel, the demand for quality accommodations, dining options, and entertainment will only continue to rise. This presents a significant chance for entrepreneurs and investors looking to capitalize on this booming sector.

Hotel Industry Booms with Projected Surge in Investment and Beds

The hotel industry is experiencing a resurgence,driven by a strong project pipeline and significant investment. Data suggests a remarkable increase in the number of available hotel beds, promising a vibrant future for the sector. Planning applications are already in place for an additional 2,338 hotel beds, and grants have been awarded for the development of 1,569 more. This expansion is expected to be further fueled by significant investment, projected to reach €385 million by 2025 and €410 million by 2026. These figures highlight the positive trajectory of the hotel industry, indicating a period of significant growth and development in the coming years. ## Navigating Challenges in the Commercial Real Estate Market The commercial real estate sector is facing a period of uncertainty.Rising interest rates and economic headwinds are creating challenges for businesses and investors alike. “Noob here. Learning React which is a SPA as it manipulates the same webpage without refreshing which is freakin …” This sentiment, echoed by many developers, highlights the lasting impact of evolving technologies on various industries. While the nature of these challenges may seem daunting, experts believe understanding the dynamics at play is the first step toward navigating this complex landscape.

Commercial Construction sees Sharp Decline, But Recovery Expected

A recent report from CIS (Construction Industry Solutions) paints a mixed picture for the construction sector. While residential builds are expected to see a 2% increase in investment in 2025, the commercial side is facing a more turbulent year. According to CIS data, commercial construction, including office building projects, is projected to experience a 45% drop in investment compared to 2024 figures. This significant decline is likely driven by a combination of factors, such as economic uncertainty and shifting work patterns in the wake of the COVID-19 pandemic. Despite these challenges, CIS analysts remain optimistic about a rebound in the commercial construction sector in 2026. <-- wp:heading level="2" --> ## Irish Construction Faces Headwinds <-- /wp:heading --> The Irish construction industry is grappling with a trifecta of challenges,according to a recent report. Labor shortages, disrupted supply chains, and surging material costs are putting pressure on projects across the country. ### Skilled Workers in Short Supply Finding qualified workers is a major hurdle for irish construction firms. The lack of available labor is forcing companies to compete fiercely for talent, potentially driving up wages and impacting project timelines. ### Global Disruptions Ripple Through Supplies Global supply chain issues have also hit the construction sector hard. Delays in the delivery of essential materials are commonplace, making it challenging for builders to stay on schedule and within budget. ### Material Costs on the Rise Adding to the pressure,the cost of construction materials continues to climb. This upward trend is squeezing profit margins and making it more expensive to undertake new projects.

Construction Investment in Ireland Faces Steep decline

Experts are predicting a significant drop in construction investment across Ireland. This downturn is expected to impact various sectors of the industry.

While specific details about the magnitude of the decline haven’t been released, the potential consequences for Ireland’s construction landscape are being closely watched.

“Ther are real concerns about the future of the construction sector in Ireland,” stated a leading industry analyst.

Irish Construction Industry Faces Potential Slump in 2024

The Irish construction sector is anticipating a challenging year ahead, with projections indicating a potentially steep decline in investment. The Construction Industry Federation (CIS) forecasts a significant 49% drop in 2024, underscoring the industry’s susceptibility to fluctuations. This projected downturn highlights the cyclical nature of the construction industry, which is often heavily influenced by the schedules of large infrastructure projects.

Understanding Fluctuations in Infrastructure Development

the construction industry is known for its cyclical nature. Large-scale infrastructure projects can significantly impact the overall industry performance, leading to periods of rapid growth followed by periods of slowdown.

“It reflects the erratic nature of this sector which is skewed by large scale infrastructure projects,”

This observation highlights the influence these major undertakings have on the construction sector as a whole. The ebb and flow of activity directly correlate with the planning, execution, and completion of such large-scale endeavors.

Understanding Fluctuations in Infrastructure Development

The construction industry is known for its cyclical nature. Large-scale infrastructure projects can significantly impact the overall industry performance, leading to periods of rapid growth followed by periods of slowdown.

“It reflects the erratic nature of this sector which is skewed by large scale infrastructure projects,”

This observation highlights the influence these major undertakings have on the construction sector as a whole. The ebb and flow of activity directly correlate with the planning, execution, and completion of such large-scale endeavors.
This is a great start too an article about the Irish construction industry! It covers a lot of ground and hits on several key points:



**Strengths:**



* **Variety of Topics:** You cover major trends like the slowdown in smaller projects, the boom in hospitality, and challenges facing the commercial sector.

* **Data-Driven:** Using statistics from CIS adds credibility and paints a clearer picture.

* **Future Focus:** You look ahead, discussing expected trends and recovery in 2026.

* **Real-World Context:** You mention the impact of COVID-19 and global supply chain issues,adding relevant context.



**Areas for Improvement:**



* **Structure & Flow:** The article jumps between topics somewhat abruptly. Consider adding more transitional sentences to create a smoother flow between sections.

* **Analysis & insight:** While you present the facts, delve deeper into the “why” behind the trends. For example, what aspects of the travel industry are driving the hospitality boom? What specific factors are contributing to the labor shortages?



* **Examples:** Incorporate specific examples of projects, companies, or initiatives to illustrate the trends you discuss.

* **Audience:** Who is your target reader? Tailoring the language and level of detail to your audience will make the article more engaging





**Suggestions:**





1.**stronger Introduction:** Start with a hook that grabs the reader’s attention. Maybe a surprising statistic or a compelling anecdote about the Irish construction industry.

2. **Theme:** Consider focusing on a central theme to provide a tighter narrative. Such as, you could explore the theme of “Resilience and Adaptation” in the face of industry challenges.

3. **Expert Quotes:** Including quotes from industry experts would add valuable insights and authority to your reporting.

4. **Visuals:** Graphs, charts, or photographs could enhance the article and make it more visually appealing.



you have a solid foundation for a extensive and informative article. By refining the structure, adding analysis, and incorporating more examples, you can create a piece that is both insightful and engaging for your readers.