Page 13 - MB99

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NEWS

average of 7.3% nationally over 38% decrease and the planning work to deliver these vital construction
the last 18 months. Builders facing permissions granted reduced 147 in projects across the country, the
double-figure raw material as suppliers 2019 to 111 in 2021, a 24% decrease. spiralling costs of and access to
warn customers of price increases Education materials required for the schemes
ranging from 5-20%. This sentiment Covid 19 continues to place is now having a serious effect on
has maintained as prices have kept substantial pressure greatly impacting the previously agreed costs and
on increasing all of 2021. This higher planning output and construction the delivery dates of these projects.
cost of building materials could activity in the Educational Sector. In We have encountered several
reasonably ‘lock out’ homebuyers 2021, there was a general slowdown in examples where originally appointed
from an already declining situation. the volumes of planning applications contractors are withdrawing from
These factors combined will no doubt for primary, secondary school and contracts and schools/education
see the residential sector in Ireland third-level projects being submitted boards being forced to re-issue
undergo varying levels of public and and approved across 3 provinces with tenders and/or approaching originally
governmental scrutiny. the lowest activity was recorded in the unsuccessful tenderers.
Commercial West, Midlands and Border regions. In A recovery for third level institutions
The commercial market in Ireland contrast volumes of applications, both seems promising, with a very notable
has seen a decrease in productivity submitted and granted in the greater increase in the areas of procurement
in 2021, particularly in office & Dublin Area and Eastern region were and construction. There is
warehouse space construction, which maintained. approximately €739m worth of college
has declined significantly since 2019. On a positive note, in 2021 there projects at a tender stage which is
There are numerous possibilities for was a substantial increase in the a healthy 4.8% increase from what
the cause of this decrease. Covid-19 number of primary and secondary was recorded in 2020. Tenders are
has halted building across the board, school projects completed, adding currently being sought for a €25 million
but it isn’t the whole picture. With approximately 1,196 classrooms to our extension to Galway Mayo Institute of
tax legislation coming into effect in schools. Notable large-scale school Technology in County Galway which
Ireland, multinational corporations projects brought to completion this is part of the €200 million NDFA Higher
will have less of an incentive to year were the €30 million Carrigaline Education PPP –We have noted a
remain primarily located in Ireland, Education Campus in County slow-down in the planning pipeline
therefore existing space will suffice. Cork, the €20 million Clarin College for student accommodation projects
This is evidenced by the fact that, Development in Newford, County with a 4.3% decrease in the number
while GDP increased from 2020 to Galway and the €19.2m new build for of schemes granted planning across
2021, GNP did not increase in the Swords Community College in County the overall region. However, despite
same way, implying that multinational Dublin. the downturn of output recorded, a
corporations have a lesser impact on CIS has observed significant delays total of 21 projects were completed
the economy. Planning permissions now being felt within the education this year. The majority of construction
submitted for these projects reduced sector. Through constant engagement activity is concentrated in the Dublin
from 214 in 2019 to 132 in 2021, a with our information sources, who and South-West regions. It might be
possible to see a pick-up in these
numbers as students return from
prolonged remote learning as the
pandemic restrictions are eased.
There are some positive indicators
here to signify a stabilisation in
construction activity with many
influential schemes continuing to
move forward in 2022. It is hoped
there will be more growth in 2022
with students returning to schools and
campuses.

2022 Project to watch
out for...

€135m - Coastal Quarter
Housing Development, Bray

Stage: Plans Granted

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