Construction activity in the Dublin City Council area continued to increase across the residential, office and hotel sectors during 2018. This is according to the Deloitte Dublin Crane Survey, a report which measures the development volumes and its impact.
The report, published today, captures the development of new schemes and the significant refurbishment of property including office, residential, hotels and student accommodation throughout 2018.
The report shows that the office sector has witnessed a continued surge in development, supported by the strong performance of the Irish economy and the continued commitment of investors, both domestic and international. The volume of development in the Dublin office sector increased from c.4 million sq ft in 2017 to 5.6m sq ft of office space under construction in 2018.
The survey notes that the take up of office space in 2018 has been heavily weighted towards the tech sector, with over 50% of the office take up throughout the year relating to tech companies.
The crane survey recorded another period of strong activity across the residential space in the Dublin City Council area. This included the commencement and completion of many large scale luxury apartment complexes, increased construction of Build-to-Rent schemes, and the entry of new and previously unseen international investment funds. Last year saw 4,119 housing units under construction across 34 schemes. This is an increase from 3,634 housing units across 42 schemes in 2017.
Commenting on the figures, Head of Real Estate at Deloitte Ireland, Michael Flynn said, "The strength of the Irish economy has been mirrored by yet another strong year for development activity in Dublin City. The development of new Grade A office space has been substantial and the completion of the current office pipeline schemes will largely address the pent up demand for space in the city centre."
He added, "Supply deficits still remain for the residential, student accommodation and hotel sectors. Our research shows the underlying gaps in supply have continued to attract many of the world’s largest and most sophisticated investors, who have entered the market to either develop, or fund development projects, in all sectors of the real estate market. Ireland remains an attractive investment opportunity for would be investors, with the significant presence and investment by large global companies further cementing its credentials."