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Building Information Ireland

Building Information Index 2022 Q1-Q2

By | Building Information Ireland, Industry News

High inflation rates among other problems have hit the construction sector following the end of the COVID-19 slump, Building Information’s new index has found.

In the newly-published Building Information Index Q1-Q2 for 2022, significant pressures have been seen in the rising costs seen in the first six months of this year. 

With the Society of Chartered Surveyors finding that construction price inflation is now running at 14%, Building Information Ireland CEO Danny O’Shea said this provided a backdrop to their half-year report of the industry. 

“Covid restrictions appear to be well and truly behind us now, but challenges remain in terms of inflation, supply chain and labour skills,” he said. 

Mr O’Shea pointed to data and recent reports from BNP Paribas Real Estate Ireland 

Construction PMI in June and July suggest huge difficulties for the sector in the summer months.

However, the same report also sees inflation easing in the coming months. 

“This should hopefully release some pressure on both suppliers and contractors in the  construction sector as we progress through the latter half of 2022.”

Commencement of projects has increased by just 65%, which is relatively static once inflation is stripped from the picture. 

However, after two years of the sector largely coming to a stand still during rolling lockdowns, the industry has perked up with a substantial 50% national increase in application activity compared to the first half of 2021

This is an increase from €13.6bn to €20.5bn year on year.

All regions of the island showed growth with Dublin seeing the largest at a 79% increase. 

Connacht and Ulster remain largely unchanged with a marginal increase of just 1% – which is actually a decrease in projects once inflation is taken out of costs. 

Although the rest of the country saw a decrease in granted permissions, they were up year-on-year nationally by 3% in thanks to Munster.

 

Residential

Despite a slight decrease in unit putput, the outlook for residential properties has remained positive with planning applications up 68% in the first six months of 2022 compared to 2021. 

This increase is substantially driven by Strategic Housing Developments (SHD) and the new  new Large Residential Developments – all of which have units of 100 or more. 

Dublin and Cork have seen the majority of new applications, showing gains of 94% and 95% in the Dublin and Munster regions respectively. 

While granted applications increased by 5% nationally for the year, Munster has seen a significant rise in comparison to the rest of the country.

Commencements are up a marginal 2% in the same period. 

Building Info’s analysis sees a possible 15% increase in activity in the short term with delays in planning and limitations of delivery hindering estimates.

 

Education 

Turning to the education sector, the outlook remains overwhelmingly positive with high levels of activity expected to continue into 2023. 

Commencements rose by 170% nationally when compared to 2021 – a further increase from 2020.

Planning applications were down nationally by 30% but granted applications rose by 43%. All regions have felt this increase with the exception of Dublin which is down 17%. 

 

Agriculture

When looking at agriculture, all metrics have seen significant decreases with planning applications down 56%.

Granted applications also fell by 43% for the year with all regions feeling this steep decline.

On the commencement front, the six months of 2022 saw a 17% national decline. 

Inflation of steel prices has seemed to contribute to this downturn. 

One consolation that can be taken for the sector is that turn around times have improved.

 

Industrial 

The industrial sector is continuing into 2022 with strong growth with planning applications up 15%.

Dublin benefited the most with a recorded 72% increase.

Although granted applications are down 19% nationally, commencements are up a significant 76%.

Strong activity is seen in Cork with Munster overall enjoying huge gains of 185%. 

Turnaround times are just three weeks longer than the industry average at 66 weeks. 

 

Commercial & Retail 

After taking a significant hit in the last two years, the commerical and retail sector has appeared to turn a corner in the first half of 2022. 

Planning applications are up 27% compared to the same period in 2021.  While this growth was felt in Dublin and Munster, Leinster and Connacht Ulster continued to show decreases of 10% and 38% respectively. 

Granted applications also increased in line with inflation. 

While national commencement activity is down, a growth of 20% in Dublin is hoped to be reflected in the rest of the country in the near future. 

In other sectors, medical construction looks neutral in the short term with current activity slowing slightly in 2022. 

Meanwhile, activity and demand are both down significantly in the social sector when comparing the first halves of 2022 and 2021. 

Information in the Building Information Index is gathered by measuring the actual (estimated) monetary build value of every construction project per sector. The data is taken by BuildingInfo from real time planning and project information. 

Projects with a value of less than €200,000 were not included from this index, with the exception of the agriculture sector.

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Building Information Index 2021 Q1-Q4

By | Building Information Ireland

A new report has spelt positive news for the construction industry with planning applications as a whole on the rise.

After two years marred by COVID-19 lockdowns, Building Information Index 2021 Q1-Q4’s has an optimistic outlook for the industry in 2022 as restrictions come to an end.

In the index released this week, it was found that there is the capacity for an 18% surge in construction levels across Ireland by the end of this year.

This boost comes off the back of a steady rise in planning applications in 2021 which saw the total value of new planning applications rise 44% higher from 2020.

All regions benefitted from this increase, with the exception of Connact/Ulster which saw an 8% drop in new applications.

Residential planning applications were up 54% in 2021 with Dublin and Cork (Munster) showing impressive gains of 75% and 76% respectively.

This substantial rise is largely attributed to the number of Strategic Housing Development applications submitted in the last year, particularly in the later months.

However, while applications are on the rise, commencements remain static at €10.5 billion – no change from 2020 and a 10% decrease from 2019.

Furthermore, residential unit projects with over 33,000 units started work in 2021 – an almost identical figure to 2020 and 2019.

Employment in the sector is also down 16% when compared to pre-pandemic levels which will forecast limits and possible delays to projects for 2022.

The report speaks of anecdotal evidence showing major administrative delays in processing larger projects, particularly Strategic Housing Developments.

Building Information CEO Danny O’Shea said: “Our year-end 2021 Building Information Index is showing more cause for optimism in the industry when compared with previous years.”

“Hopefully, the lockdowns are behind us now and we can focus and plan 2022 with a better degree of certainty than has been the case for quite some time.”

Mr O’Shea continued: “However, as noted, we must be mindful that while the demand is there, and the intent of the industry to deliver that demand is certainly present, we may have shortfalls in terms of labour, skills and materials that must be overcome.”

Sadly, not all factions of the industry have seen positive growth in the last year with the commercial and retail sector continuing its downward trajectory into 2021.

Planning applications were down 11% last year from 2020 and was felt in all regions except for Munster.

Granted applications also remained the same in both 2020 and 2021.

Building Info expects a further 15% decline in construction activity throughout 2022 with no presumption of a turn-around in the short or mid-term.

Meanwhile, the industrial sector is booming with new applications rising by 27% in 2021, in particular from  IT, manufacturing and pharmaceutical companies.

Regionally, Munster experienced a significant increase of 110% in applications last year.

Furthermore, granted applications are up 52% with turnaround times also relatively short for industrial projects at 63 weeks.

For 2022, the Index indicates a 37% growth for the sector in 2022.

The agricultural sector experienced a slight decline nationally in 2021 of 4%. Granted applications were also down 7% with Munster suffering the brunt at -26%.

For both the medical and education sectors, 2021 was a relatively steady year with no further declines expected for either in 2022.

However, the turnaround times in the medical sector are 15 weeks slower than the industry average.

For the social sector, a slow recovery is most likely after it experienced significant blows during the pandemic. In 2021, new applications increased by 60%.

This data was compiled from real-time planning and project information by BuildingInfo with the estimated monetary build value of every construction project per sector in the country measured.

Projects with a value of less than €200,000 were omitted from the index, with the exception of the agricultural sector.

Buildinginfo_index_2021

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Medical Construction Projects Commenced

By | Building Information Ireland, Industry News

Medical Construction Projects

The table below provides a sample of Medical Construction projects commenced in the last 3 months.  Each of these Medical Construction projects has a construction value of greater than €1 million.  At Building Information Ireland we provide our subscribers with full details on all Medical Construction projects taking place throughout Ireland and Northern Ireland.

Project ID Title Location Start Date
31 €21.9m Nursing Home Project in Co. Dublin Old Ballymun Rd 08/10/18
94766 €11.3m Care Home Development in Co. Dublin Cabra 03/09/18
62734 €11m Care Home Development in Co. Dublin Monastery Park 30/10/18
52756 €6.2m Medical Centre in Co. Cork Inchydoney Rd 28/08/18
91737 €4.3m Care Home Extension in Co. Cork Belgooly 27/08/18
49241 €2m Nursing Home Extension in Co. Wicklow Arklow 31/10/18
98395 €1.3m Dental Surgery Alterations in Co. Limerick Castletroy  04/10/18
85337 €1.1m Care Centre Alterations in Co. Dublin Kilternan  15/08/18
92858 €1.16m Respite Care Centre Alterations in Co. Clare Scarriff 05/10/18

To access details on all of the projects listed above please register for your FREE TRIAL here.