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The recent CSO figures published in March 2023 demonstrate a worrying reduction in planning permissions granted in 2022, amounting to a 20.5% drop in the total number of dwelling units granted permission for the year.
Underpinning this is the reduction in planning permissions granted for apartments. These decreased by 54% in Q4 2022 when compared to the number of units approved for the same period in 2021. Whilst it is worth noting that the original baseline figure for the total number of apartments was relatively low, these figures reflect a continued decline in apartment permissions throughout 2022. Q4 2022 also saw an annual decrease of 31.4% in the number of new dwelling units granted planning permission, with houses accounting for 50.5% of all new dwelling units granted permission in this period.
The Director of Housing, Planning and Development Services at the IHBA, Conor O’Connell, commented that this trend “amplifies concerns facing the industry over the viability of apartments. With the sector facing high costs and an unstable funding market, government policy measures are urgently needed to address cost issues, along with a proper resourcing of the planning system. A sustained increase in the completion of new homes is required to deliver adequate supply that meets the country’s needs, as well as the targets set out in Housing for All.
A continued deficit in the number of all types of planning permission granted will perpetuate supply issues and an inability to deliver housing needs. If apartment construction is no longer viable, alternative build options will need to be considered to provide high density housing options across the country, with policy reforms needed to deliver this”.
- The total number of dwelling units granted planning permission in 2022 fell by 20.5% to 34,177 units from 42,991 units in 2021.
- Housing units accounted for 51% of all dwelling units approved in 2022, while apartments made up the remaining 49%.
- The number of houses granted planning permission rose by 4.4% on an annual basis to 17,454 housing units in 2022, in contrast with a large decline of 36% in apartment permissions to 16,723 units.
- There was an annual rise of 14% in the number of multi-development houses receiving planning permission, compared with a decrease of 8% in one-off houses.
- Planning permission was granted for 10,803 apartments across all four Dublin local authorities in 2022, accounting for 65% of all apartments granted planning permission in the state.
- In Quarter 4 (Q4) 2022, there was a decrease of almost 44% in the total number of dwelling units approved planning permission at 7,597 units compared with 13,450 units in Q4 2021.
- Planning permissions granted for apartment units fell by 54% in Q4 2022 compared with Q4 2021, while there was a decline of 28% in house permissions granted during the same period.
- An annual reduction of 21% was recorded in the number of planning permissions granted for all developments, with 5,691 permissions approved in Q4 2022 compared with 7,222 in Q4 2021.