Top Construction & Property Stories From the Week: 10at10

Some of the most noteworthy construction stories from the last week, as compiled by the team at Construction Network Ireland.

(Have a story you think should be covered? Contact editor@constructionnetworkireland.com)

1.

Building materials group Grafton has reported revenues of €2.8 billion for 2016, an increase of 13.4%.

Grafton’s Selco chain in the UK has outperformed the rest of the group despite an uncertain year for the industry there, and the company is clearly bullish on the potential in the UK as it opened seven new branches there in December.

Business was good in Ireland yet again, with double-digit increases for the third year in a row.

2.

Just 4,000 homes are under construction in Dublin according to Minister for Housing Simon Coveney, despite the fact that planning permission has been granted for 27,000 housing units.

Responding to questions by Independent TD Stephen Donnelly, who said that the profits being made by developers in commercial buildings was to blame for the lack of residential housing development,  Minister Coveney said that the Government was trying to ensure the “viability of residential” building improved.

According to data from the Department of Housing 10 developers have planning permission for 9,000 housing units but are not building on them, in large part due to difficulty in accessing finance and the low margins on residential construction.

3

The Irish Construction industry had a strong 2016, despite a slowdown in December, and looks set to have an equally strong 2017 on the basis of orders at the end of last year, according to the Ulster Bank Purchasing Manager Index.

While December was a little slower it marked the 40^th month of growth in the industry.

According to Chief Exonomist for Ulster Bank in Ireland Simon Barry,“…momentum behind the sector’s recovery continues to look encouragingly solid, with a marked pick-up in New Orders in December indicating that activity trends look set to remain positive in early 2017”.

4.

It may seem unlikely (and a hellof a time of year to announce it) but Ireland is to get a large scale investment in solar energy to the tune of €220 million in a joint venture by BNRG Renewables and French renewable energy group Neoen.

The solar farms will see 2,000 jobs created during the construction phase, with a further 60 jobs created when the farms are fully operational.

The construction phase is expected to start in mid-2018 with the final projects to be constructed by 2020. When fully operational the firms are expected to meet the electricity needs of 80,000 homes.

5.

The Dublin Airport Authority (DAA) is seeking an extension of it’s planning permission for a new €320 million runway at Dublin Airport from Final County Council.

Work on ancillary infrastructure such as new taxiway is already under way and began in December 2016, with the main construction phase due to begin this year.

The timeline for the delivery of the project is 2020, which the DAA says has not changed, but the planning permission runs out this year.

Dublin Airport handled 27.9 million passengers last year, an 11% increase on 2015.

6.

Pernod Ricard, the owners of Irish Distillers Limited (IDL) has announced a €10.5 million investment in its Midleton Distillery in Midleton, Co. Cork.

The investment, which involves the installation of three large copper stills and ancillary works, will increase capacity at the Midleton Distillery by 30%.

IDL is also currently investing €100m at its Dungourney maturation site, while in August of last year it also invested €11.5 million in a new interpretative centre at the Old Jameson Distillery in Smithfield.

The Irish Whiskey industry is in an unprecedented growth phase – while there were just 4 active distilleries in Ireland in 2012, there are currently 16 actively producing spirits, with another 13 in the planning or construction phase.

7.

The Dublin County Board of the GAA are in talks to purchase the 35 acre Spawell Complex in Tempelogue, where it is believed it intends to construct a 25,000 capacity stadium.

The Dublin County Board had tried to buy the site in June 2015, but were outbid by an investment fund. Negotiations are ongoing and do not look set to be finished before February of this year.

8.

Construction at the mammoth €230 million Center Parcs holiday park in Co. Westmeath, which will involve 750 construction jobs, is expected to begin in May, with the park expected to open in 2019.

The tourist infrastructure, which will be the largest in the State’s history, will comprise of 470 holiday lodges, 30 apartments, a spa,  restaurants, cafes, shops, sporting facilities as well as an indoor swimming pool complex.

9.

The latest GeoView Residential Buildings Report highlights the continued geographical imbalance in Ireland’s housing infrastructure. The report shows that 1 in 5 houses in Leitrim is vacant, with similar problems in Roscommon and Mayo.

Leitrim had the highest proportion of vacant dwellings in Ireland with 21% empty, followed by Roscommon at 18% and Mayo at 17%.

Leitrim has a total of 18,203 houses, of which 3,786 are vacant according to GeoView and 1,589 are holiday homes.

And finally…

10.

The recent launch of the “CBRE Outlook 2017” report underscored what is to be a challenging year for the real estate industry in Ireland, in no small part fue to the fact that 2016 was such a good year, with strong turnover in hotels, office and retail space.

The line that stood out to us most in the Irish Independent analysis however, especially given the day that is in it, was the acknowledgement by CBRE Ireland managing director Enda Luddy that the unexpected outcome of both the UK referendum on Brexit and the US presidential election would “by default have implications for the Irish property sector”.

It should be a good year for the construction industry as a whole – but it’s ok to allow yourself a little shudder.