State warned it must intervene to help developers hit targets

[Brendan Burgess]

An interesting report from Ronan Lyons

State warned it must intervene to help developers hit targets

Ireland needs 47,000 new homes a year, close to double the Government's current target for construction, according to a new report from economist Ronan Lyons, commissioned for a property industry body.

www.independent.ie

It said State intervention is needed to underwrite developers to hit that level of activity.

But they warn the €460,000 cost to deliver apartments [ in Dublin] includes around €225,000 of so-called hard costs with the rest made up of land, Vat, professional fees and financing costs.

 

[MrEarl]

The state could build and deliver accommodation a lot cheaper, if they did it directly and used land already owned by the state, rather than outsource to private enterprise.

I do not support the current model, and do not accept that we need to pay €460k for an apartment.

Just imagine how many units the state could have built with €30m, rather than hand it over to Hines, for those units at RTE