Irish Housing Market: Is Cork a Bright Spot or a False Dawn?
While the Irish housing market continues to grapple with significant challenges, housing completions in Cork have bucked the national trend, reaching their highest levels since 2008. This unexpected surge, revealed in the latest Housing Market Monitor Q1 2025 from the Banking & Payments Federation Ireland (BPFI), presents a fascinating, yet complex, picture of where the market is headed. But is this a sign of lasting recovery, or just a temporary reprieve before a more significant downturn?
Cork’s Housing Boom: A Closer Look
The BPFI report highlights a contrasting scenario. Annualized housing completions in Cork from March 2024 to March 2025 surged to 3,567 units. This robust growth is in stark contrast to the national decline in housing completions experienced over the same period, representing a critical point in the housing crisis.
Cork’s performance is notable, accounting for 12.3% of all housing starts in Ireland during the 12 months ending March 2025. However, this positive trend needs to be carefully considered in the context of broader market dynamics, particularly given the decrease in apartment commencements in the first quarter of 2025.
National Slowdown: Planning Permissions and Commencements
Unfortunately, while Cork shows positive signs, the national picture is less encouraging. The report reveals that the number of residential units granted planning permission across Ireland dropped by 21% year-on-year in 2024, indicating a likely slowdown in the pipeline. This trend could exacerbate existing problems in addressing the housing shortage.
Furthermore, commencement numbers are a cause for concern. According to Brian Hayes, chief executive of BPFI, the initial figures for the first four months of 2025, at 3,945 units, are “discouraging”. These levels are around 40% of those observed in 2023 and comparable to levels seen in 2016, suggesting potential long-term difficulties in increasing supply. The drop in apartment commencements, specifically in Munster, also contributes to this gloomy outlook.
The Munster Factor: A Region of Contrasts
Munster, including Cork, presents a mixed bag of results. While accounting for a significant portion of planning permissions granted, a decrease from the last three months of the previous year is evident. This highlights the complexities of regional variations within the broader national housing market.
The data shows that the region, in the early part of 2024, witnessed a surge in apartment commencements, but this has waned over the past few months. This could be due to various factors such as construction costs, delays in securing planning permission, and funding constraints.
Future Implications and Potential Trends
The juxtaposition of Cork’s success against the national backdrop raises critical questions about future housing availability. The decline in planning permissions, coupled with the slowdown in commencements, could lead to a decrease in available housing units in the medium term. This could result in increased competition for properties, potential price increases, and challenges in accessing the property market.
Examining factors like infrastructure developments, population growth, and government housing policies in Cork specifically will be crucial in understanding the sustainability of its current trajectory and its potential influence on the wider national housing market. For a deeper understanding of the factors influencing the Irish housing market, consider reading the latest report from the Economic and Social Research Institute (ESRI). ESRI Reports
The mixed signals emanating from the Irish housing market, especially in the wake of these recent figures, offer a lot to consider for prospective buyers and policymakers. While Cork’s recent successes are noteworthy, the broader concerns surrounding national completions and planning permissions demand careful attention. What are your thoughts on the future of the Irish housing market and Cork’s role in it? Share your insights in the comments below!
