Infrastructure deficits in the areas of water, power and transport will remain a “key constraint” on the building of new homes this year, property agency Lisney says, after a “disappointing” 2024 was characterised by missed housing targets.
In its 2025 property market outlook report, Lisney also said the €500,000 threshold for first-time buyers looking to avail of the Government’s help-to-buy scheme was fast becoming “inadequate” in Dublin.
Against a backdrop of rising house prices in Dublin, Lisney said it “strongly” recommended a review of the threshold, which was “pushing more buyers out to the surrounding counties”.
Overall, it said that while there had been an uptick in homebuilding in recent years, 2024 was “disappointing with targets missed and an annual decline of 7 per cent” in the number of new homes registered.
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The report said the market was expected to remain “busy” this year with strong buyer sentiment continuing to outstrip supply.
A “key market constraint” this year would be the “deficits in infrastructure”, specifically around water, wastewater, drainage, power and transport connections, Lisney said.
“There were examples in recent times where multiphase developments had to pause construction midstream while they waited for utility companies to catch-up and install the necessary pipes and infrastructure,” the report’s authors stated.
“Even when all required infrastructure is in place, there are often substantial delays in getting utility connection commissioned and activated at completed properties, delaying move-in dates for new homeowners.”
While pledges were made in the Programme for Government to tackle infrastructural issues, some of these promises would have to be progressed “rapidly” to “remove the blockages” in the market, Lisney said.
Overall, the agency expects the investment property market to remain strong in 2025 and is forecasting a total of €3 billion to be pumped into Irish property, up from €2.4 billion last year.
The commercial real estate sector is experiencing renewed momentum
Foreign interest in Irish commercial and residential property investment remained strong, Lisney said, amid falling interest rates and a shortfall in the number of properties available within certain market subsectors such as purpose-built student accommodation.
Lisney managing director David Byrne said 2024 marked a turning point in the market, “bringing greater stability” after a series of challenges.
“With the cycle of interest rate increases drawing to a close and inflation returning to more sustainable levels, the commercial real estate sector is experiencing renewed momentum,” he said.
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