Irish Housing: Planning Permissions Rise, But Construction Challenges Remain

Ireland saw a 7.9% increase in homes granted planning permission in 2025, with 34,974 receiving approval, up from 32,401 in 2024, according to the Central Statistics Office (CSO). However, experts caution that approvals alone don’t guarantee new homes, citing ongoing challenges in the construction sector and the planning system.

Planning Permission Trends

The CSO data reveals a breakdown in approvals: apartments saw an 8.8% increase, while house approvals rose by 7.3% in 2025 compared to the previous year. A significant portion of apartment approvals are concentrated in Dublin, accounting for over half of all apartment permissions nationwide. Specifically, the four Dublin local authorities experienced a 20.3% increase in apartment planning permissions last year.

Looking at the final quarter of 2025, planning permissions increased by 19% compared to the same period in 2024.

Government Targets and Housing Output

The Irish government has set a target of building 300,000 homes between 2025 and 2030. Achieving this goal will require a substantial increase in housing output from the 36,284 homes built in Ireland in 2024.

Challenges to Construction

Despite the rise in planning permissions, industry experts emphasize that translating approvals into actual construction remains a significant hurdle. Trevor Grant, chairperson of Irish Mortgage Advisors, highlights the need for a functioning planning system, access to serviced land, a supportive policy environment, labor availability, and investment in water infrastructure. He also points to high building materials inflation and construction earnings as critical challenges.

Grant stresses the direct link between planning approvals and house prices, warning that a sluggish housing supply will perpetuate steep price and rent inflation, making homeownership unaffordable for many. He also notes the impact on existing homeowners, as higher house prices lead to larger mortgages and increased interest payments.

Permissions Not Always Realized

Lorcan Sirr, a housing policy analyst and lecturer at Technological University Dublin, echoes these concerns, stating that around 35% of planning permissions are never built. This is often due to speculation, where land is purchased, planning permission is obtained, and then the land is sold on without construction taking place.

Sirr also notes a slowdown in home-building activity in Fingal and South County Dublin, with the majority of new apartments destined for Dublin. Over the past four years, 95% of all new builds in the capital have been apartments, and most of these are for rental purposes.

Future Outlook

Looking ahead to 2026, Sirr predicts that the number of planning permissions for new homes will likely fall between 36,000 and 40,000, due to the ending of the development levy waiver and the Irish Water rebate.

Latest Economic Data from the CSO

Recent data from the CSO, as of March 12, 2026, indicates a 2.7% Consumer Price Index in February 2026, 3.8% GDP growth in Quarter 4 of 2025, and a 4.6% monthly unemployment rate in February 2026. The Retail Sales Index saw a 1.5% increase in January 2026, while the Residential Property Price Index increased by 7.0% in December 2025. Ireland’s population stood at 5.15 million in 2022. CSO