Kevin James this morning spoke about the “The Real Costs of New Apartment Delivery” Report published by the SCSI today.
The Key Findings were as follows:
- The cost of delivering a low rise apartment in suburban Dublin is €293K
- Delivery cost of medium rise apartments in the city ranges from €470K to €578K
- Report finds delivery of affordable medium rise apartments in Dublin is not commercially viable
- Affordability analysis found viable apartments require joint income of €87,000
- Construction costs make up 43% of total cost, while soft costs – such as VAT, margins, levies and fees make up – 41% of total costs
- Site purchase costs make up remaining 16% – but site costs range from €33K to €125K per apartment
- Surveyors say addressing costs issue requires multi-faceted approach including increasing supply of serviced land, flexibility in design, and improved rates/access to financing
For full report here