Construction volumes are projected to increase by 4.9% this year, and the estimated value of construction output will be €29.1 billlion, according to the EY Economic Advisory report for Euroconstruct.
Annette Hughes, Director at EY Economic Advisory, said, following subdued construction activity in 2020 and 2021 due to the pandemic, the industry commenced the year with cautious optimism and much work to be done. These projections are below the Housing for All targets of 29,000 and 33,450 respectively and reflect a combination of factors, including delays with respect to planning, the servicing of lands, the longer delivery time due to an increase in the number of apartments as well as the escalation in building costs, which is impacting the viability of some schemes.
The availability of skilled labour is an additional challenge given competing demands from the new build and retrofitting sectors. In the non-residential sector, the report notes that almost 12 million square metres of new non-residential buildings were granted planning in the last five years.