Housing construction in Galway up on last year

The number of new homes on which construction work began in Galway in the first half of this year was up more than 60% on the same period in 2013.

The growth has been described as “extremely positive” for the market and a boon for the beleaguered construction sector in Galway.

Official local authority figures show that the number of new residential housing projects that got underway in Galway City and County between January and June was 244 – that’s up 63% on the 150 during the same period in 2013.

It’s also up from the 202 in the first half of 2012, and almost on a par with the 247 for six months in 2011.

The latest ‘National Housing Construction Index’ compiled by researchers at Link2Plans.com measures construction activity through planning applications and Commencement Notices submitted to the City and County Councils. Commencement Notices are submitted when construction work is about to begin on a permitted project.

Nationally, the average increase in commencements was 66% – the highest rates of increase were recorded in Westmeath (189%), Monaghan (138%), Sligo (114%), Cork (112%) and Meath (98%).

The level in Roscommon remained static at 0%, while the lowest rates of increase were recorded in Cavan (17%), Wicklow (18%), Louth (19%) and Longford (26%).

Planning applications to both local authorities in Galway decreased by 3%, from 314 to 310. The comparative figure for the first half of 2012 was 380, down from 523 in 2011.

There was an average national increase in planning applications of 19% in the first half of this year.

Danny O’Shea, Managing Director of Link2Plans said: “The huge increase in project commencements however, is tempered by the fact that there has been a massive drop in the rate of growth in the last few months.

“A rush to get residential construction projects started before new building regulations came into force on March 1, 2014 was the main factor behind the remarkable increases in project commencements in the first few months of this year.

“The year on year increases for planning applications and project commencements bodes well for the construction sector in the short to medium term.

“The year-on-year increase in project commencements is incredibly positive, notwithstanding the slowdown in the rate of growth in project commencements since the start of the year.

“The figures for planning applications and project commencements are extremely positive. They are still relatively modest in the overall context of the level of construction activity required to meet the recent ESRI forecasts for housing requirements,” said Mr O’Shea.