Residential Construction Expands in Ireland Amid Rising Material Prices
Ireland: The latest BNP Paribas Real Estate Ireland Construction index reveals that while overall construction activity in Ireland decreased due to a drop in commercial work, while residential building continued to expand for the fourth consecutive month. The Government's plan to revise house-building targets to around 50,000 units per annum has bolstered builders' confidence. However, input cost inflation has reached a 14-month high, increasing the prices of materials such as timber, concrete, and insulation. This rise in costs could impact the price of new homes and the viability of certain projects, particularly capital-intensive apartment blocks. Despite the rise in activity, staffing levels have increased for seven consecutive months, although the pace of job creation has slowed due to shortages in building trades and construction professionals. The housing sub-index scored 52.4, indicating strong growth, while the overall construction activity index fell to 47.5 from 49.8 in May.
Source: Irish Independent