Knight Frank New Homes Construction Research – April 2021
Knight Frank Ireland carried out a survey of developers to assess the impact that the Covid-19 crisis has had on their decisions, output and plans for the future.
Some key findings:
- 54% reported weaker construction activity in 2020, compared to 2019.
- 64% of construction projects were delayed between four to six months over the last year, while 18% were delayed by less than three months with the remaining 18% of projects delayed by 7-12 months.
- Skills shortages have also intensified with 57% seeing this as a bigger problem over the last twelve months.
- While sourcing development finance has also been more difficult, it has not deterred developers from seeking sites, applying for planning permissions and pushing ahead with projects.
- 77% did not delay applying for planning for new projects. 8
- 2% believe that Covid-19 will bring about changes to the way new homes are designed going forward.
- Overall, developers while taking a more cautious approach to new plans, have consolidated and are moving forward with existing plans (82% aim to add to their land bank in 2021) and remain optimistic about activity in 2021, as sites re-open.
- 59% believe that 2021 will see stronger activity than in 2020.
- Pre-Covid-19 challenges remain – with the cost of construction topping the list of concerns.