Developers could now get up to 144,000 euros per apartment

Builders could get up to €144,000 per apartment under the government’s €500m tax-funded scheme to bridge the gap between rising construction costs and market value.

The new fund will help build 5,000 homes over the next five years.

Cabinet ministers were told last week that the original limit of €120,000 per apartment may be exceeded in some parts of the country. The funding
will not lower the total price of the apartment.

The Crói Cónaithe (Living Heart Fund) will allocate 450 million euros for building houses in cities and 50 million euros for real estate in cities.

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Newly published documents show development
Students can now receive up to €144,000.

The documents state: “The maximum planned subsidy per apartment is 120,000 euros.

“However, in certain cases where lower market prices mean the profitability gap is larger, this may not need to be exceeded by more than 20 percent.”

It is understood that housing built outside Dublin can exceed the €120,000 limit.

To qualify for a grant, homes and developers must meet three strict criteria
Open their books to the
State to show that they are struggling with rising construction costs.

Government sources have stressed that the apartments will not be sold to vulture funds but to owner-occupiers, downsizers or first-time buyers.

Social Democrat TD Cian O’Callaghan said the €144,000 figure “got out of hand”. He said apartments in Limerick had recently sold for less than €168,000.

“The idea that you would possibly pay a €144,000 subsidy to build a home where investment funds have been buying up homes for little more is crazy, it’s a very large subsidy,” he said.

“There’s no rebate and it’s just an incredibly expensive way to subsidize housing and ultimately it will drive up the price of the land.” Developers could now get up to 144,000 euros per apartment

Fry Electronics Team

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