The housing minister has confirmed that developers will make a profit on the apartments they build with government subsidies.
Developers can receive up to €144,000 per apartment they build under the newly created Crói Cónaithe (Cities) fund.
The fund aims to build 5,000 homes in the five major cities.
The Society of Chartered Surveyors Ireland (SCSI) has previously said developers typically aim for a 15 per cent profit margin on their projects.
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Cian O’Callaghan, Social Democrat spokesman on housing, asked Housing Secretary Darragh O’Brien if developers would make a 15 per cent profit on their developments.
“The margin is of course included, you can’t develop anything without a margin,” Secretary O’Brien said.
Mr O’Brien said that “radical action” was needed to get families to live in cities.
“What we need to see in our cities, if we’re serious about compact urban growth, if we’re serious about redeveloping brownfield sites, and if we’re serious about tackling the issue of viability, and if people are actually building their own.” Having homes, families being able to live in our cities, we need to take radical action to make that happen.”
However, he refused to say whether the profit margin will be 15 percent.
He said the fund will be targeted and open to developers, and the subsidy will be passed on to the buyer.
The Social Democrats will be calling in Dáil next week for subsidies for developers to be scrapped altogether.
Opposition politicians have harshly criticized the system, with Sinn Féin calling it “insane”.
But the government fears that without the fund, no homes will be built at all and hopes the money will give developers an incentive to build homes.
While developers can get a maximum of €120,000 per apartment for apartments being built in Dublin, they can get as much as €144,000 for apartments outside the capital.
https://www.independent.ie/irish-news/politics/developers-will-make-a-profit-on-state-subsidised-apartments-minister-confirms-41644553.html The minister confirms that property developers will make profits with state-subsidized housing