The Society of Chartered Surveyors Ireland has just released it’s “Real Costs of New Apartment Delivery 2020” report, wherein it claims that the costs of building an apartment in Dublin can be as much as €619,000.
A two-bedroom apartment in the outskirts of the city can cost between €359,000 and €413,000. However, unit costs jump to between €411,000 and €521,000 as the height of the building increases, (5 to 8 stories). The report indicates that buildings are becoming taller and taller, which would be driven by sustainability, environmental and urban sprawl factors. Nonetheless, in economic terms, cost and height have a positive relationship; the higher you go, the more it costs.
City Centre two bedroom apartments are still more expensive than in the suburbs at €493,000 to €581,000 in medium sized buildings but jumping to between €514,000 and €619,000 in high-rise blocks.
The report notes that, for certain types of apartments, costs have decreased, mainly because of a Department of Housing’s decision in 2018 to change design guidelines by reducing car-parking requirements.
The percentage of cost responsible for ‘Bricks and mortar’ can be less than 50%, with other factors such as land, development levies, professional fees and VAT making up the shortfall.
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