The number of homes granted planning permission in Ireland increased by 7.9% last year, with 34,974 approvals compared with 32,401 in 2024, according to the Central Statistics Office (CSO). Apartment approvals saw the strongest growth, rising 8.8%, while house permissions increased by 7.3%.
Planning permissions are considered a key indicator of future construction, with experts noting that more than 50,000 new homes need to be built annually to address Ireland’s housing shortage. Dublin accounted for a significant portion of the growth, with permissions for apartments across the city’s four local authorities up 20.3%. The capital represented more than half of all apartments granted planning permission nationwide.
Figures for the final quarter of 2025 showed a 19% increase in permissions compared with the same period a year earlier, highlighting a sustained upward trend. The government has set an ambitious target of constructing 300,000 homes between 2025 and the end of 2030, though last year only 36,284 homes were completed.
Trevor Grant, chairperson of Irish Mortgage Advisors, warned that planning approvals alone do not guarantee construction. “It is vital that these permissions translate into actual building, which requires a functioning planning system, access to serviced land, a supportive policy environment, access to labour, and more investment in water infrastructure,” he said. Grant also highlighted high building materials costs and rising construction wages as key challenges for the sector.
He emphasized the link between planning permissions and housing affordability. “Unless there’s a steady pipeline of approved developments, housing delivery will be sluggish, and steep house price and rent inflation will persist, leaving homes unaffordable for many,” he said. Grant added that delays in planning and infrastructure continue to stall the completion of thousands of new homes, affecting both prospective buyers and renters.
Lorcan Sirr, housing policy analyst at Technological University Dublin, noted that around 35% of planning permissions “never get built,” a common pattern in countries with high levels of land speculation. He said the figures show that construction activity in Dublin, particularly in Fingal and South County Dublin, has slowed, with most new apartments intended for rental markets. Over the past four years, 95% of new builds in the capital have been apartments.
Sirr predicted that planning permissions for new homes in 2026 could range from 36,000 to 40,000, as government incentives such as the development levy waiver and Irish Water rebate are expected to end this year. While the increase in planning permissions is a positive sign, experts stress that turning approvals into completed homes will be crucial to easing Ireland’s housing crisis.
The data underscores that while progress is being made on paper, systemic challenges in construction, planning, and infrastructure continue to limit Ireland’s ability to meet the growing demand for homes.
