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 life cycle.
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.