Soaring cost of apartments
Earlier this week, the Society of Chartered Surveyors of Ireland (SCSI) published a report on the real costs of delivering new apartments. Loyal readers of this column may not have seen too much to surprise - but the figures remain concerning nonetheless.
Building a two-bedroom apartment in Dublin costs €470,000 minimum, according to the report - and can cost as much as €580,000. As if that isn't bad enough, these figures, which are based on actual schemes, exclude VAT, which would add another 13.5pc to the figure.
Build costs often get mixed up with profitability. But that is not how professional developers work. Developers work off a minimum rate of return. If that return is not there, they will not develop. The reason costs matter is because they convert into higher rents or mortgage payments.