Planning permission figures suggest housing crisis will 'continue to worsen', says property investor
Eva Osborne
New figures from the Central Statistics Office (CSO) have revealed a drop in housing units granted planning permission last year.
19,207 was the number of house units granted permission in 2024, down from 19,738 in 2023. Apartment units experienced a much bigger drop in permissions granted - down to 13,194 in 2024 from 21,487 in 2023.
In Quarter 4 2024, the total number of dwelling units approved planning permission was down by 38 per cent to 6,890 units compared with 11,181 units in Q4 2023.
Managing director of Roundtower Capital, a provider of finance to property investors and developers in Ireland, Ian Lawlor, said: “The decline in planning permissions in Q4 2024 is deeply concerning and suggests that the housing crisis will continue to worsen.
"Without a steady pipeline of approved developments, the construction industry cannot deliver the volume of homes Ireland urgently needs.
"The reality is that the planning system remains one of the biggest obstacles to housing delivery. Lengthy delays, legal challenges, and inconsistent decision-making make it incredibly difficult for developers to bring projects to fruition.
"While the Government has acknowledged these issues and is considering reforms to planning laws and land zoning, action is needed now not years down the line."
At the same time, Lawlor said funding remains a "major challenge".
"The Taoiseach has highlighted the need for €20 billion annually to meet Ireland’s housing targets, with the vast majority of this coming from private investment. Yet, if the planning system continues to create uncertainty, developers and investors alike will hesitate to commit the capital required.
"Crucially, while financial incentives such as tax-incentive schemes have been floated, the focus should be on creating viable business conditions for developers rather than short-term policy changes. Ireland needs a long-term, strategic approach that ensures planning permissions lead to real homes being built, otherwise, an entire generation will be left waiting.
"One of the most overlooked barriers to housing delivery is the persistent delay in securing utility connections from Irish Water and the ESB.
"Planning permissions are a vital first step, but they mean little if housing projects are stalled by delays in utility connections. Developers are frequently required to fund costly infrastructure upgrades, such as substations and pumping stations, before they can even connect homes to essential services.
"These additional burdens slow down delivery, drive up costs, and ultimately limit the number of homes that reach the market."
Lawlor said the new Planning and Development Act, which was meant to streamline the planning process, is still not in force and may not be effective for another year as additional regulations are yet to be finalised.
"This is a prime example of how everything in Ireland’s planning system takes far too long. Even if the Act eventually comes into effect, the reality is that any meaningful impact will likely come too late to benefit the lifespan of this Government. An absurd situation given the urgency of the housing crisis.
"Ireland needs a planning system that works efficiently and effectively for large-scale residential projects. Without this, the gap between housing demand and supply will only continue to grow, leaving a generation struggling to secure a home."
