A joint income of almost €100,000 is needed to buy the cheapest apartment in the Greater Dublin Area according to a new report by the Society of Chartered Surveyors
The report found that a couple would need a deposit of €38,000, and a combined salary of €96,000 to afford a two bed apartment in a Dublin suburb.
The organisation is calling for more targeted supports for buyers struggling to get on the property ladder.
Key Findings & Recommendations
- Total development costs of delivering medium-rise apartments in Dublin city and suburbs have fallen by between 2% and 9% since 2017
- The total development costs of medium rise apartments now ranges from €411K to €619K including VAT
- Cost savings are largely due to the introduction of new apartment design guidelines in 2018
- New locations of developments in 2020 report are reflected in lower site costs than those in 2017
- Affordability remains a critical issue – lowest priced, low rise suburban apartments requires income of at least €98K
- Construction costs or ‘hard costs’ of medium rise blocks now make up 47% of total costs, up from 43% since 2017, while soft costs make up 42% and land 11%
- Total development costs of developing low rise apartments in Dublin suburbs ranges from €359K to €413K – an increase of 8% and 7% respectively
- While only one low rise apartment type was viable in 2017, this has now risen to two, with two other types are very close, including medium rise in the suburbs
- Report shows Build to Rent is viable in locations that Build to Sell is not
- Surveyors call for more targeted supports for buyers struggling to get on property ladder and say delays in the planning process and by Irish Water as well as court actions are adding to costs.
The SCSI publishes its hugely important report 'The Real Costs of New Apartment Delivery' today. https://t.co/ldZIX2gYQj
Full report here https://t.co/vGhNTIe8mw
— SCSI – Society of Chartered Surveyors Ireland (@SCSISurveyors) January 26, 2021