€31.1bn Annual Recycling Development Capital Needed to Meet Government’s Housing Target by 2030 – Report

• Property Industry Ireland publishes Irish Housing Allocation and Funding report
• €140bn required from private and State sources to fund the ownership of 300,000 homes upon completion, at an average of approximately €466k per unit

Property Industry Ireland (PII), the Ibec association representing the property sector, will launch a new report at its annual conference today. The report provides a detailed examination of the funding requirements and sources necessary for the Government to achieve its housing delivery targets.

The report, conducted by KPMG on behalf of PII, found that in order for the Government to reach the target of delivering 60,000 homes per year by 2030, development funding will need to increase to an estimated €31.1bn in annual recycling development capital. Additionally, around €140bn will be required from both private and State sources to fund the ownership of 300,000 homes on completion, at an average cost of approximately €466k per unit.

Minister for Housing, Local Government and Heritage, James Browne, is expected to address the conference, which brings together leading industry experts across the housing supply sector.

Property Industry Ireland Director David Howard said:

“PII commissioned this report to consolidate an industry perspective, including an estimated tenure distribution of the Government’s housing targets across private buyers, the private rental sector (PRS), social housing, and affordable housing.

Identifying the funding sources needed to deliver these homes is only the first step — we also need the right policy measures to ensure Ireland remains an attractive location for investment. This includes providing infrastructure — a prerequisite for housing delivery — the funding for which is outside the scope of this report and in addition to the figures quoted herein.

It also requires certainty — both in the taxation of investment and within the planning system. Recent measures announced by the Government, including the extension of planning permissions due to expire and the retroactive application of Section 180 of the Planning and Development Act 2024 to existing permissions, are welcome developments.

The upcoming Housing Plan 2025–2030 presents a pivotal opportunity to unlock sustainable housing delivery, address affordability, and restore confidence among investors, homebuilders, renters, and homebuyers alike. The sector is deeply committed to working with the Government to find solutions.

Finally, it requires a rental policy that aligns to our international competitors and ensures Ireland is at the forefront of attracting capital investment.”

If the Government wish to meet their targets, PII believe they need to consider:

• To achieve the Government’s target of delivering 60,000 homes per year by 2030, development funding will need to increase to approximately €31.1bn in annual recycling development capital
• A significant amount of long-term capital, approximately €140bn, is required from private and State sources to fund ownership of 300,000 homes on completion at an average of c.€466k per unit
• Approximately €29.6bn of long-term investment capital is estimated to be required to fund the ownership of c.58,250 new PRS units across multi-family, PBSA and single-family rental stock within Government’s 300,000 units target between 2025 and 2030
• If the estimated 118,300 new social and affordable homes are ultimately owned by the State or State-supported entities— such as local authorities, approved housing bodies, and the Land Development Agency—they will require approximately €8.5bn in annual long-term State capital investment, totalling around €50.7bn over the forecast period.