Ireland’s residential construction industry is forecasting a substantial acceleration in new home deliveries throughout 2025 and 2026, according to fresh survey findings published by Goodbody, offering encouragement that the country’s persistent housing crisis may begin to ease. The sentiment from developers and builders suggests a turning point in supply constraints that have hampered the property market for years.
The optimistic outlook captured by the financial services firm reflects confidence among construction professionals that dwelling completions will rise materially above recent output levels. This positive sentiment comes as Ireland continues to grapple with one of Europe’s most severe housing shortages, where demand for residential units consistently outstrips available supply across most regional markets.
Goodbody’s research surveyed participants across the homebuilding sector to gauge expectations for production capacity and delivery timelines. The findings indicate that industry stakeholders anticipate overcoming several barriers that have previously constrained construction activity, including planning delays, labour shortages, and material cost pressures that characterized the post-pandemic recovery period.
The anticipated increase in housing supply aligns with government objectives to accelerate residential construction nationwide. Enterprise Ireland and the Industrial Development Authority Ireland have both identified adequate housing as critical infrastructure necessary to support economic growth and foreign direct investment attraction. The availability of quality accommodation for workers remains a key consideration for multinational enterprises evaluating location decisions.
Ireland’s housing market has experienced persistent undersupply for more than a decade, with annual completion figures failing to meet the estimated 33,000 units required annually to satisfy demographic demand. The shortfall has contributed to escalating purchase prices and rental costs, creating affordability challenges for households across income brackets and prompting government intervention through various schemes and initiatives.
The construction sector’s improved confidence may stem from several factors, including greater certainty around planning regulations, stabilization of building material costs following post-pandemic volatility, and improved availability of skilled trades personnel. Additionally, financing conditions for development projects have shown signs of normalization after a period of heightened caution among lending institutions.
Recent policy measures introduced by the Department of Housing have aimed to stimulate supply through reforms to planning procedures, increased infrastructure investment in development zones, and targeted supports for first-time purchasers. These initiatives appear to be gaining traction within the development community, contributing to the optimistic projections captured in the Goodbody survey.
The Central Bank of Ireland has consistently highlighted housing supply constraints as a macroeconomic concern, noting the broader implications for inflation, household formation, and labour market mobility. Monetary authorities have emphasized that sustained increases in dwelling completions represent a prerequisite for restoring equilibrium to property markets and alleviating cost-of-living pressures affecting Irish residents.
While developer sentiment indicates expectations for improved output, translating optimism into completed units requires navigating numerous practical challenges. Construction timelines typically span 18 to 24 months from commencement to handover, meaning projected increases in 2025 and 2026 depend on projects currently in planning or early construction phases.
The sector must also contend with ongoing concerns regarding workforce capacity, as skilled labour shortages continue affecting project delivery schedules across multiple trades. Competition for qualified personnel has intensified as construction activity has rebounded, placing upward pressure on wage costs and potentially affecting development viability for certain projects.
Industry observers note that sustained growth in housing supply requires not only builder confidence but also supportive conditions across planning authorities, utility providers, and local infrastructure capacity. Coordination among these stakeholders determines whether development sites can progress efficiently from approval to occupancy.
The positive outlook expressed by homebuilders nevertheless represents a significant shift from the cautious sentiment that prevailed during recent years, when uncertainty around regulatory changes, cost inflation, and market demand created hesitancy around committing to new projects. The survey findings suggest this caution has dissipated, replaced by expectations that market conditions will support increased construction activity through the medium term.
For prospective homebuyers and renters, the anticipated supply increase could eventually translate into improved availability and moderated price growth, though market dynamics suggest any relief will materialize gradually rather than immediately. The housing sector’s recovery trajectory will remain a focal point for policymakers, financial institutions, and households navigating Ireland’s challenging property landscape.