Rising costs of new builds

A recently published report by the Society of Chartered Surveyor Ireland (SCSI) has found that almost two thirds of Irish construction firms are currently operating at full capacity.

It is expected that over half the business in the sector expect their workload to increase in the next 12 months.

However significant rising costs and shortages in the supply of labour are putting great pressure on the affordability and viability of some construction projects.

Firms also reported that development finance is becoming more difficult to source because of the increases in interest rates by the European Central Bank over the past 11 months.

SCSI President Enda McGuane commented “ According to our members, the hike in interest rates has become a key reason why access to finance is be- coming increasingly difficult to acquire.

Viabilty of projects has been ranked as the number one reason causing difficulty in raising development finance, followed by access to bank finance / credit and access to equity / venture capital.”

"The higher interest rates are affecting exit yields and thus making more projects unviable. When you combine these pressures with high inflation rates as well as more localised challenges around the availability of skilled labour and operating capacity, the pressure on feasibility and ultimately the viability of some projects is

Despite the challenges, 7 out of every 10 chartered surveyors believe the overall outlook for the construction sector is positive.

Locally, a number of new developments have started to appear in the market, some currently under construction, others with construction about to commence. Two such schemes available through DNG Ted Healy are Cloverfield, an exclusive development of 4 bedroom detached homes just launched on Muckross Road, within walking distance of the town centre and National Park. Phase 1 comprises of only 5 units with construction to commence shortly. Strong interest is expected with Phase one likely to sell out fast. Prices from €655,000 with deposits now being taken.

The Inches, is a development of 11 x 2 bedroom town houses situated just off Woodlawn Cross, Muckross Rd. Construction is well underway here and very

TED HEALY | ASCSI ARICSDip AVEA

DNG TED HEALY

11 New Street, Killarney, Co Kerry strong interest is reported. The development is expected to officially launch later in the year when prices will be announced.

To register interest in either scheme contact DNG Ted Healy 064 6639000 / killarney@dng.ie