Croí Cónaithe scheme significantly underperforming in apartment delivery

The Croí Cónaithe Cities Scheme in Ireland is falling far short of its goals. Aimed at creating 5,000 apartments by the end of 2026, only seven contracts have been signed so far. This amounts to just 870 apartments, which is only 17% of the target. Launched in 2022, the scheme offers funding to developers to help cover the costs of building apartments. A budget of €450 million was set, allowing developers to receive up to €120,000 for each apartment. However, this funding is only paid out once an eligible owner-occupier buys the apartment. Critics, including Sinn Féin’s Eoin Ó Broin, argue that the scheme is poorly designed and too costly. He suggests any unallocated funds should be redirected to local authorities for more affordable housing options. Additionally, last year's data shows a significant drop in planning permissions for apartments, down nearly 40%. The Central Statistics Office reported that permissions fell from 21,487 to 13,194. Experts say this decline is linked to reduced investment from international developers and increasing construction costs. Factors like underground parking and safety measures make building apartments more expensive than houses. These costs, combined with the requirement to sell all units at once, make developing apartments challenging for builders.