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Building Information Index Q1-Q4 2017

By | Industry News

In this year-end volume of the Building Information Index the levels of activity in the construction industry are compared and analysed across the 3 full year periods of 2015, 2016 & 2017. The activity is broken down into key sectors and regions, and also across important stages of the construction and planning lifecycle.

The key message displayed in the findings of this Index is that output has increased steadily year on year over the 3 year period and will continue to grow in the short to medium term. While the growth rate may be slowing marginally, we forecast growth in the region of 9% for 2018 with the likelihood of positive growth continuing into 2019.

 

 

 

Value of construction project Commencements grows by +31% in 2017

The value of Construction Project Commencements grows by +31% in 2017 when compared with 2016. The value is up +67% when compared with 2015. Construction projects with a combined value of €10.7bn Building Information Ireland commenced in the year. Growth was recorded in 6 of the 7 sectors analysed with only Industrial project commencement activity showing a year on year decline.

Dublin continues to dominate the industry where over 51% of the entire country commencements took place in 2017. This trend is growing with the same calculation last year showing Dublin at 45%. Residential developments accounts for 54% of Project Commencements in 2017 which is consistent with 2016 and shows the importance it is to the industry as a whole.

Value of Applications up +11%

The value of construction project Applications is up +11% in 2017 and +16% for the 2 year period to 2015. Overall, the pipeline of project Applications was €23.2bn for 2017, up from €20.8bn in 2016. Again Dublin accounts for the largest share, but the percentage is falling, and now stands at just under 39% of the overall, compared with 44% last year.

Residential projects also make up the lion’s share of project Applications with €14.9bn worth of applications, just over +64% of all applications by volume. Commercial & Retail, the second largest sector recorded a decrease in Applications, -13%, as did 4 other sectors in 2017. This points to a potential cooling off in construction output in the medium term with growth rates remaining in single digits at best through 2019 and 2020.

Building Information Index – H1 2017

By | Industry News

Welcome to the latest volume of the Building Information Index

This volume of the Building Information Index provides insight and key analysis of activity in the construction industry for the first six months of 2017. It also provides an invaluable foresight as to what the remainder of 2017 and 2018 will bring. I hope you find it informative.

Download here for FREE

In this volume actual activity to the end of June 2017 is compared to the same periods in 2016 and 2015. The analysis takes a close look at the construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social.

 

 


The total value of Construction Project Commencements grows by €969M (+26%) for the six months to end of June 2017

The value of construction project Commencements for the first six months of 2017 has grown by +26% when compared to the same period in 2016. This represents a continued trend of growth which is up +99% when compared to the same period in 2015. However, when broken down only three of the seven sectors examined actually registered growth. The increase is largely underpinned by the Residential sector which is up €1.14bn (+67%) followed by Agricultural (+102%) and Social (+53%). Industrial (-33%), Commercial & Retail (-4%), Educational (-12%), Medical (-10%) all recorded decreases in Commencements. On the postitive side all sectors still show an increase when compared to 2015.

Value of Applications rises

The value of construction project Applications rose by 11% to €9.69bn when compared to the first six months in 2016. This represents an increase of +27% when compared to the same period in 2015. Again this growth is driven by the Residential sector, the largest sector which is up +€1.41bn (+34%). The only other sector to show a growth is Social (+156%). The other five Commercial/Retail(-19%), Industrial(-16%), Medical(-30%), Education(-25%) and Agricultural(-14%) recorded decreases.

The Building Information Index is measured by factors that correlate with the phases in a construction project. The first is project Commencements which relate to projects that are in progress on-site and where construction activity has started. The second is Applications which are a real time barometer of sentiment in the construction sector and relate to all projects yet to be approved for planning. Thirdly we look at projects that have been granted permission. This shows projects that are further along in the cycle, and being approved, they show more short term potential in the market.

Building Information Index Vol. 6 Q1 to Q3 2016

By | Industry News

Welcome to the sixth volume of the Building Information Index

This volume of the Building Information Index provides insight and key analysis of activity in the construction industry for the first nine months of 2016. It also provides an invaluable foresight as to what remainder of 2016 and 2017 will bring. I hope you find it informative. 

Download here for FREE

In this volume actual activity to the end of September 2016 is compared to the same periods in 2015 and 2014. The analysis takes a close look at the construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social. 

 

 

The total value of Construction Project Commencements grows by €1.46bn (+37%) for the nine months to end of September 2016.

The value of construction project Commencements for the first nine months of 2016 has grown by +37% when compared to the same period in 2015. This shows continued growth building on the +44% reported in previous half year index. Year on year comparison for the first nine months showed a growth of 140% when compared to the same period in 2014. Six of the seven sectors examined registered growth. The Industrial sector recorded the largest percentage growth with Commencements up +104% (to€636m) on 2015 figures. Residential, the largest and most significant sector continued with strong growt hof +48% year on year and with the value of Commencements at €2.59bn. The Agricultural sector alone reported a decrease of -5% to €36.6m.

Value of Applications rises.

The value of construction project Applications rose by 4% to €13.3bn when compared to the first nine months in 2015. This represents an increase of +39% when compared to the same period in 2014. Four sectors reported gains including a marginal gain of 1% for Residential, the largest sector. Gains of 55%,10% and 5% for Commercial/Retail, Industrial and Agricultural while Medical, Education and Social recorded decreases.

Building Information Index Vol. 5 Q1 to Q2 2016

By | Industry News

Welcome to the fifth volume of the Building Information Index

This volume of the Building Information Index provides insight and key analysis of activity in the construction industry for the first six months of 2016. It also provides an invaluable foresight as to what remainder of 2016 and 2017 will bring. I hope you find it informative. 

Download FREE here

In this volume actual activity for the half year to the end of June 2016 is compared to the same periods in 2015 and 2014. The analysis takes a close look at the construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social.

 

 


The total value of Construction Project Commencements grows by €1.12bn (+44%) for the six months to end of June 2016

The value of construction project Commencements for the first half of 2016 has grown by +44% when compared to the same period in 2015. This shows continued strong growth building on what was reported in previous full year index for 2015. Year on year comparison for the first six months showed a growth of 97% when compared to the same period in 2014. Five of the seven sectors examined registered growth. The Education sector recorded the largest percentage growth with Commencements up +148% (to €218m) on 2015 figures. Residential, the largest and most significant sector continued with strong growth of +61% year on year and with the value of Commencements at €1.67bn. The Agricultural and Social sectors reported a decrease of -28% and -22% respectively.

Value of Applications static

The value of construction project Applications remained static at €8.3bn when compared to the first six months in 2015. This does however represent an increase of +37% when compared to the same period in 2014. The Commercial & Retail and Agricultural sectors reported gains of +73% and +37% respectively, with the remaining sectors reporting marginal decreases. Residential the largest sector, was down -15% on 2015 with total Applications of €3.8bn to the end of June 2016 compared with €4.5bn in to the endof June 2015. 

The Building Information Index is measured by factors that correlate with the phases in a construction project. The first is project Commencements which relate to projects that are in progress on-site and where construction activity has started. The second is Applications which are a real time barometer of sentiment in the construction sector and relate to all projects yet to be approved for planning. Thirdly we look at projects that have been granted permission. This shows projects that are further along in the cycle, and being approved, they show more short term potential in the market.  

National Media Interest in latest Building Information Index

By | Industry News

Building Information Index in the Media

Below is a selection of recent articles concerning the findings of the latest edition of the the Building Information Index Vol. 4 Q1 to Q4 2015.

A FREE copy of the index is available to download here

 

Sunday Business Post

Recovery is finally being felt as construction values jump

Irish Independent

House building up – but delays of up to three years hampering delivery 

Business & Finance

Value of construction projects up over €3.19bn in 2015

Business World

Irish Construction spending up 109%

Irish Building 

Value of Construction projects up over €3.19 billion in 2015

Breaking News

Spending on Irish construction doubled since 2014

BizPlus

The total value of all construction projects commenced in 2015 jumped significantly

98 FM

Increase Of 3 Billion Euro Spent On Construction

 

Full details on all projects aggregated to produce the Building Information Index are available to subscribers.  Free trial access is also available from our homepage.

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Building Information Index Vol. 4 Q1 to Q4 2015

By | Industry News

Welcome to the fourth volume of the Building Information Index

As 2016 begins the Building Information Index provides the construction industry with key analysis and insight as to what is happening and what is planned for the coming year. The full year 2015 index is a key piece of research that plots the growth trajectory of the construction industry by region, the sector and funding type. I hope you find it informative. 

In this volume the full year of 2015 is compared to 2014. The analysis takes a close look at the construction industry broken down by region, funding source and sectors; Residential, Commercial & Retail, Medical, Education, Agriculture, Industrial and Social. 

The Building Information Index is measured by factors that correlate with the phases in a construction project. The first is project Commencements which relate to projects that are in progress on-site and where construction activity has started. The second is Applications which are a real time barometer of sentiment in the construction sector and relate to all projects yet to be approved for planning. Thirdly we look at projects that have been granted permission. This shows projects that are further along in the cycle, and being approved, they show more short term potential in the market.

 

The total value of Construction Project Commencements grows by €3.19bn (+109%) in 2015

The value of construction project Commencements in 2015 has grown by +109% when compared to 2014. This shows continued strong growth building on what was reported in previous quarterly indices. Q1-Q2 year on year comparison showed a growth of 41%, Q1-Q3 showed growth of +67%. Now for the first time in 2015 all sectors registered growth. Commercial and Retail recorded the largest percentage growth with Commencements up +217% (to €1.53bn) on 2014 figures. Industrial was similarly up +160% to €701m. Residential, the largest and most significant sector more than doubled in volume with growth of +114% year on year and with the value of Commencements in 2015 at €2.74bn. 

Value of Applications up +22%

The value of construction project Applications also show consistent growth of +22% (Comparable figures in the previous index showed growth at +26%). The value for 2015 stands at €15.43bn, compared to just under €12.64 in 2014. All sectors, again with the exception of Social, have recorded increases in Applications with the largest jump percentage wise in Industrial (€1.22bn) up +80% on 2014. Volume wise again Residential is the largest sector, with the growth rate up +31% on 2014 with total Applications of €8.23bn in 2015 compared with €6.27bn in 2014. 

For furrther Information contact Building Information Ireland CEO Danny O’Shea – 01 9053200 | info@buildinginfo.com

Residential Building Sector – Sunday Business Post

By | Industry News

Focus on Residential Building

In an article from the Sunday Business Post, dated 31st January 2016, Tina-Marie O’Neill takes a look at the current state of play in the Residential Building Sector.  Her highly informative article sources statistics and data from the Building Information Index and CEO Danny O’Shea shines a positive light on improvements being observed through the index. Sunday Business Post

Not so quiet on the new homes front

New homes developments are beginning to appear in the greater Dublin area

It is encouraging to see a flurry of new homes schemes either on the market or preparing to launch in the greater Dublin area at this early stage of the year. With average rents in Dublin just shy of the 2007 peak rental figures, an increase in new homes on the market will certainly help alleviate the housing shortage. Despite the positive upswing, a recent forecast report from the Society of Chartered Surveyors Ireland put the annual number of homes needed in Dublin at 7,000 and currently the figures fall well short of that. By the end of 2015, just 2,735 homes had received planning permission, prompting the SCSI to argue that the lack of supply continues to put pressure on the “dysfunctional” property market. It also criticised a lack of planning staff in local authorities which translated into long delays on badly needed projects. A small ray of light on that front came from Danny O’Shea of the Building Industry Index. According to O’Shea, the residential sector is on a strong growth trajectory with applications up at the end of 2015 by 29 per cent on the previous year and – more importantly – commencements were up by 98 per cent. As well as that, the average lead-in time for projects to start is reducing. It is currently at about 132 weeks from application to commencement. “This lead-in time has stagnated the industry in recent years, but we have seen it reduce gradually throughout 2015. At the beginning of 2015, the duration stood at 141 weeks. This will continue to reduce throughout 2016, further improving the activity levels in the sector. All of this augers well for increased residential output into 2016 and beyond,” said O’Shea…. To read full article – Not so quiet on the new homes front – Sunday Business Post 31 1 2016

Building Information Index Vol. 3 – Q3 2015

By | Industry News

As the construction industry continues to grow, the aim of this quarterly Building Information Index is to provide the Construction Industry with reliable and consistent data on the regional aspects to recovery, the sectors which are recovering quickest and how the recovery is being funded.

Value of Construction Project Commencements grows by +67% in first 9 Months of 2015

The value of construction project Commencements in the first nine months of 2015 has grown by +67% when compared to the same period of 2014. While the Q1-Q2 year on year comparison showed a growth of 41%, continued growth into Q3 2015 brings the total 9 months Commencements to €4.25bn compared to €2.55bn in 2014. All sectors registered growth with the exception of Education (-7%) and Social (-12%). Commercial and Retail recorded strong growth with Commencements up +99% (to €830m) on 2014 figures. Industrial was similarly up +99% to €482m. Residential, the largest and most significant sector also almost doubled in volume with growth of +98% year on year and with the value of Commencements in the first 9 months of 2015 at €2.09bn.

Value of Applications up +26%

The value of construction project Applications also show consistent growth of +26% (Comparable figures in the previous index showed growth at +27%). The value in 2015 stands at 11.27bn, compared to just under €9bn in the first nine months of 2014. All sectors, again with the exception of Social, have recorded increases in Applications with the largest jump percentage wise in Industrial (€935m) up +95% on 2014. Volume wise again Residential is the largest sector, with the growth rate up +29% on 2014 with total Applications of €5.58bn in 2015 compared with €4.33bn in the first nine months of 2014.

The Building Information Index is measured by factors that correlate with the phases in a construction project. The first is project Commencements which relate to projects that are in progress on-site and where construction activity has started. The second is Applications which are a real time barometer of sentiment in the construction sector and relate to all projects yet to be approved for planning. Thirdly we look at projects that have been granted permission. This show projects that are further along in the cycle, and being approved, they show more short term potential in the market.

Full details on all projects referenced in compiling the Building Information Index can be found on our construction projects database

Industrial Construction Sector Q1 & Q2 – Building Information Index

By | Industry News

According to figures from the latest edition of the Building Information Index the Industrial Construction sector maintains its strong performance since the beginning of the year with increases in value of new Applications, Granted Permissions and Commencements when compared to the first 6 months of 2014.

The image below shows the geographic distribution of over 80 Industrial Construction project applications during Q1 &Q2 2015.

Industrial Construction Project Applications

Fig 1. Industrial Construction Applications

The value of new Industrial Construction Applications increased nationally by +143% to €631m. Despite a fall in Q1, Granted Permissions are now +8% up on the first 6 months of 2014. Commencements have also increased by +58% to €191m when compared to the same period last year.

At a regional level we see increases in the value of Applications in all areas. Connacht / Ulster saw an increase of +336%, Munster +123%, Dublin +113% and Leinster increasing by +112% when compared to the same period in 2014.

Nationally Industrial Commencements have increased +58% to €191m when compared to the same period in 2014. Interestingly despite a decrease in Commencements in Dublin (-10%), Leinster (-68%) and Connacht / Ulster (-36%) the large increase in Munster to €130m lifts the national average.

Industrial Construction Pipeline

Fig 2. Industrial Construction Planning Pipeline and Commencements

The Industrial Construction sector currently has one of the shortest Application to Commencement durations at 57 weeks, significantly below the general construction industry average.

Industrial Construction Durations

Fig 3. Industrial Construction Application to Commencement

 

Sunday Business Post – Residential Housing Analysis

By | Industry News

Below is an excellent article from Tina-Marie O’Neill that featured in The Sunday Business Post yesterday (06/09/15).  Danny O’Shea CEO of Building Information Ireland provides an insight into the Residential Construction pipeline with some of the findings from the latest edition of the Building Information Index.  Contributions from many of Ireland’s largest property consultants shed further light on the outlook for the Residential Housing sector. Residential Housing Sunday Business Post

New home scheme numbers on the up

The number of new homes schemes under construction in Dublin – and increasingly in its surrounding commuter belt counties – is finally on the up. However, these green shoots of recovery in the residential market are in jeopardy of proving negligible, washed away by the sheer tide of demand for homes in the capital. The latest research from Building Information Ireland shows that residential housing projects with a combined quantity of 7,785 units began construction in the first half of 2015, (this number excludes “one off” houses, which are thought to make up almost half of all new homes currently being built). The estimated construction cost of these commencements is a healthy €1.43 billion. And according to the latest Building Information Index, residential housing project commencements showed an increase of more than 44 per cent in value when the first half of this year is compared to the same period in 2014. “Unsurprisingly, the bulk of these units starting to be built – some 3,143 – are in greater Dublin with a further 3,140 in Leinster,” said Danny O’Shea of Building Information Ireland. “Munster statistics show some 1,230 residential units were started this year with a much lower amount, a mere 272, started in Connacht/Ulster. “The pipeline for residential housing projects which are yet to start also shows signs of strong growth with 14,405 units (worth €3.13 billion in construction costs) granted permission in the first half of 2015,” said O’Shea. “There were an additional 18,355 units within new planning applications in the first six months of 2015. “However, a detailed analysis undertaken by Building Information Ireland shows a significant lead time of 139 weeks – or more than two-and-a-half years – on average between planning being applied for a residential development and construction starting on site,” said O’Shea. It could easily take another year for the first tranche of homes to be delivered once building has commenced. That puts in stark figures what most property buyers already know; there simply are not enough residential units on the market to meet demand in the capital. Current construction levels are operating at about a third of the volume required and with rising rents, demand remains tremendous. “Now that the holidays are over we are experiencing a steady increase in enquiries for upcoming new home developments in and around Dublin,” said Ken MacDonald, founder and director of Hooke & MacDonald. “Most of the demand is coming from first-time buyers seeking three and four bedroom houses and two bedroom apartments. There’s also good demand from existing owner occupiers wishing to trade up from smaller properties to more spacious family homes and, conversely, there are also retirees actively seeking to trade down from large houses to smaller houses or apartments. Due to the buoyant rental market, investors are becoming quite active again, although many investors are exiting the market due to the unfavourable tax regime and speculation about pending rental capping,” he said. MacDonald criticised the new Central Bank minimum mortgage deposit rules for exacerbating the issue. “Notwithstanding the increase in enquiries and sales, a substantial number of people, particularly first time buyers, are being unfairly excluded from buying due to the Central Bank mortgage restrictions. The reality is that prices in the market had already cooled from September 2014 and have continued to moderate or remain fairly static,” he said. “Some commentators mistakenly attribute this to the mortgage restriction which only came in after Christmas. The exclusion of people from buying is adding to the shortage of supply in the rental market and there are no signs of any moves to increase supply in this sector. Rental cap measures, if introduced, will actually decrease supply,” warned MacDonald. Angela Keegan, managing director of MyHome.ie, is also concerned that rising rents will intensify the issue. She has also urged a greater diversity of units to be built as cautious developers are catering to a specific block of house hunters. “Given the current market pressures, it’s unfortunate to see so few apartment developments coming to the market,” she said. “We see only one development of one-bed apartments, six of two-beds and two of three-beds in our analysis. With rents on the rise, the government clearly needs to incentivise the property investment market to cater for current demand. “We are seeing a major increase in the number of new developments coming to the market in Dublin and commuter belt counties. Of the 45 developments in Dublin, 20 are concentrated in south Dublin with Dublin 14 and 16 being particular hot spots. West Dublin is also quite strong with nine schemes launched at the moment, mostly in Castleknock, Lucan and Clonsilla. “However, it’s hard to get a handle on exact volumes as schemes are being released in different phases. There is one development in Swords of 85 units coming to the market, but that is the exception. “Generally it looks as if developers are adopting a much more prudent approach and building homes to cater for first time buyer demand rather than investment properties. That is very much reflected in the type of properties being built with the focus very much on three and four-bed semis.” Among the tranche of mainly small developers that have either survived or emerged from the recession are a limited number of familiar Celtic Tiger era residential property developers, including the Cosgrave Group, which continues to deliver high end four and five-bed family homes in both north and south Dublin, Sean Mulryan’s Ballymore Properties, Gerry Gannon of Gannon Homes, Park Developments and Durkan Estates, who are all currently active in new homes schemes. Keegan said: “Another trend we are seeing is that Dublin city is continuing to spread into the commuter belt counties. “We are seeing a lot of new schemes in Bray, Newtownmountkennedy, Naas, Celbridge, Clonee etc. This may well be in response to tighter mortgage lending limits introduced by the Central Bank earlier this year. Our analysis also shows that the further out you move from the city, the larger the homes being built.” For the many potential new home buyers out there, Gina Kennedy of Douglas Newman Good (DNG) New Homes has this advice: “Look around, do your research and register your details or sign up to waiting lists for schemes in your preferred area. Buyers have to be alert to launch dates and general invitations of interest in schemes. This sector of the market can change quickly given that releases can be dependent on completions, near completions or can be sold off-plan,” said Kennedy. “We are often approached by potential buyers before we even erect our hoarding on site who want to be put on waiting lists. “We’ve a lot of new schemes in the pipeline too with a good volume coming on stream early next year, including schemes with new phase releases and brand new developments too.” Upcoming launches Six four-bed semis of 172 square metres at Heatherton in Bray for Heatherbrook Homes, priced from €495,000 through Hooke & MacDonald in mid-October. The same agent will launch 12 large four-beds (197 – 254 square metres) at Ardilea Crescent in Clonskeagh, Dublin 14 for O’Malley Construction next February. Hooke & MacDonald will also launch a number of three and four-bed homes at Cuil Duin in Citywest, Co Dublin as part of the first phase of the 200-home scheme in December. Savills is launching four and five-bed homes at Emsworth Park in Kinsealy later this week. The same agent will also handle the release of three, four and five-bed homes at Piper’s Hill in Naas, a Ballymore scheme, with units priced from €325,000 and spanning between 124 and 251 square metres. Ely Woods, a scheme of 35 units in Rathfarnham will offer a number of two and three-bed duplex units and apartments for sale through Savills later this month. Maybury Properties is releasing a number of three and four-bed homes at its 35-unit scheme at Cooper’s Wood in Kinsealy, also through Savills, at the end of September/early October. Guardian New Homes will launch a small scheme of six family homes spanning 171 to 176 square metres at Richmond Close on the Dundrum Road in Milltown in Dublin 6 later this month. Sherry FitzGerald will shortly launch four-bed family homes for sale at The Grove on Goatstown Road in Dublin 14. The 163 square metre homes are being built by Durkan Estates.