The latest figures from the Building Information Index show that the overall value of construction projects commenced saw a significant increase in the first half of 2016, rising by €1.12 billion to €3.69 billion when compared to the same period in 2015.
This figure represents a very strong increase of +44% in the value of actual construction activity for the first six months of 2016 when compared to the first half of 2015.
The index is compiled from real time planning and project information by Building Information Ireland. It is measured by examining in detail the two distinct phases of a construction project.
The first phase relates to project Commencements which are projects where construction activity has commenced on the specific site. The second phase relates to project Applications. Both phases are measured for the first half of 2016 and compared with the same period in 2015, for comparative purposes.
The value of Applications remained static, which measures the value of construction projects that have applied for planning permission in the first six months of 2016. Overall projects with a combined value of €8.2bn applied for planning permission during this period, but there was an extremely high fall off in residential applications. A fall of -15% was recorded, from €4.46 billion to €3.81 billion. Commercial and Retail projects continue to be extremely popular with a rise of +73% to €2.67 billion.
Residential construction projects with a total of 7296 units commenced construction in the first half of 2016, up from 5407 in 2015, a rise of 35% which is also reflected in varying degrees of growth in every region of the country except Leinster.
The largest growth +145% was felt in Munster with projects starting construction that when complete will have 1531 individual housing units. Connacht / Ulster was next with a rise of 82% to 354 units, Dublin saw growth of 74% to 3329 units, while there was a large fall-off in Leinster of -22% to 2082 units.
Managing Director of Building Information Ireland, Danny O’Shea said, "The focus on residential construction remains strong and all of the vital signs are positive according to the data contained in the Building Information Index. There is a strong upward trend in all parts of the country in relation to residential projects under construction."
He added, "However on a more negative note, the first half of 2016 saw a -9% decrease in the number of residential units that submitted planning applications. This figure was most acute in Dublin, with a fall of -22%. A total of 17,328 residential units would be built if all of these projects proceed through the planning process."
Source: www.businessworld.ie
