Glenveagh says 400,000 homes need to be built over the next decade


Irish property developer Glenveagh says housing supply will not meet demand unless zoning rules change.

Hief chief executive Stephen Garvey said Ireland needs 400,000 new flats – including apartments, social and affordable housing and student rentals – over the next decade, with more than 35,000 new constructions each five.

Mr. Garvey believes the industry can provide enough on-demand supply despite staff shortages and soaring prices.

“I think the industry has the potential, if policies and the environment are created to help make this happen,” he said after releasing the company’s full-year 2021 results on Tuesday. .

However, he said the Government would need to step up and get “creative” to remove logjams from the judicial review process and “promote” national standards at the local level.

Figures from the Irish Federation of Banking and Payments this week showed 20,433 units completed in 2021, down slightly from the previous year due to Covid and a 13-week shutdown of the construction sector.

The government says housing construction starts crossed the 30,000 mark last year, with the BPFI projecting 50,000 new homes to be built between now and the end of 2023.

Glenveagh is expected to deliver 1,400 suburban apartments this year, alongside commercial and apartment developments. It is aiming for 3,000 a year in the medium term.

The developer closed 1,150 home sales transactions in 2021, an increase of 64 points in 2020 and an increase of 36 points in 2019.

It also managed to reduce the average cost of a suburban home from €311,000 in 2020 to €308,000 (net Vat) last year, despite a 6 percent increase in construction costs.

Mr. Garvey said costs are likely to increase similarly this year due to a stronger increase in oil prices due to Russia’s war in Ukraine.

“We had hoped that the cost of inflation would fall by year-end as the pandemic broke out.

“Unfortunately, with geopolitical issues, there is some element of uncertainty there.

“Those costs will eventually have to be passed on to consumers.”

He also warned that “labor will be tight” this year but that the industry could so far supply a similar number of units in 2021, compared with 2020, albeit with fewer staff.

Meanwhile, Glenveagh has pledged to provide emergency accommodation to 40 Ukrainian families fleeing the war, and will donate €250,000 to Ukrainian charities.

Glenveagh yesterday said revenue doubled in 2021 to 476 million euros from 232 million euros in 2020, thanks to an increase in sales.

It expanded its existing share buyback plan after completing two separate buybacks totaling 175 million euros in February.

The group reported a core gross profit margin of 19.6 percent, with a core gross profit of €78.7 million, up 164 percent in 2020. Pre-tax profit of €45.7 million , up from a loss of 15.7 million euros in 2020.

Orders for futures increased from 1,105 units at the beginning of January to 1,921 units, with a value of 675 million euros.

Suburban gross margins are expected to “be in excess” of 18 percent by 2022.

Glenveagh said the market outlook for Irish housing companies remained favorable. Glenveagh says 400,000 homes need to be built over the next decade

Fry Electronics Team

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