A new assessment by the Society of Chartered Surveyors Ireland indicates that recent policy changes have strengthened the financial viability of apartment construction. The study suggests that Government interventions introduced after a slowdown in apartment delivery have altered the economics of the sector in a noticeable way.

Before any State assistance was applied, only two of six typical apartment types could be delivered economically. Once the various supports were factored in, the number of viable categories increased to five. The measures included in Budget 2026, such as a reduced VAT rate for apartment construction, were designed to encourage large-scale investment and support new supply.

Although viability has improved, the surveyors argue that affordability remains a serious obstacle for prospective buyers. Several of the State-backed supports apply only to units priced below €500,000, yet current market prices in many areas exceed that figure. Two-bedroom suburban apartments are now estimated to sell for between €480,000 and €650,000. The study calculates that a first-time buyer couple would need a combined income of €108,000 to €146,000 to secure a home in this bracket. This level of income is far beyond the reach of most households.

Commentary from the report’s co-author, Paul Mitchell, highlights the scale of the problem. He notes that, based on CSO data, only the top one fifth of earners can comfortably afford to rent an apartment and only the top two fifths can afford to buy one at average market prices. Meanwhile, the cost rental scheme is structured for couples earning between €59,000 and €66,000 net, which underscores the mismatch between price levels and household incomes.

The study also looks at the underlying costs facing developers. Total development costs for some apartment types have risen by between 4 and 6 percent over the past five years. A two-bedroom apartment in a medium-rise urban development now costs approximately €523,000 to build, up from €493,000. The largest cost escalation was recorded in suburban schemes, where changes in building typologies resulted in a 32 percent increase, pushing the cost of a two-bedroom unit from €411,000 to €541,000.

The findings illustrate a sector that has regained some commercial viability yet continues to present considerable affordability challenges for ordinary buyers. Without further structural adjustments, the gap between supply and what households can realistically afford is likely to persist.

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