House Construction Price- How Much Does It Cost To Build A House In Ireland On Average.
Having your own house is a life goal. Aspiring people work endless hours so that they can finally afford their own place. But with the complexities of a project like building a house, the first hurdle becomes determining a cost. The various elements involved in house-building make it challenging for an everyday person to draw out an estimate. This article takes an in-depth look into the cost of house-building in Ireland on average.
Size
The required cost of any house is obviously determined by its sized. A smaller house costs less; a larger house costs more, houses having what kind of floors, wooden or marble. depends. In Ireland, the average house size varies amongst the population. A recent report from the Irish Times notes that:
- Nearly 70% of the Irish people live in larger houses than required
- Irish households have 2.1 rooms per person, more than the EU average of 1.6 rooms per person
- 3.2% of the population lives in smaller accommodations than they need
- 5.8% of the people from the age group 20-25 have less space in their homes than needed
The overall average size of an Irish home- according to a 2016 Micheal Mohan report- is 1214 sq ft or 113 sq m.
Breaking it down
As alluded to before, house building involves many different elements. For example
- Construction which involves design, materials and labor
- Site development includes getting electricity, water and gas lines
- Levies: the related taxes
- Finance costs: the interests and charges relating to mortgages and loan
According to the previously mentioned Micheal Mohan report, building a 1214 sq ft house could cost up to €330,000, with the detailed costs as follows:
| Element | Cost in € | Cost per sq ft in € |
| Construction | 122,251 | 101 |
| Site works | 10,000 | 8 |
| Site development | 18,000 | 15 |
| Professional fees | 5,500 | 5 |
| Levies | 11,750 | 10 |
| Land and acquisition costs | 57,500 | 47 |
| Sales and marketing | 8,200 | 7 |
| Finance cost | 20,200 | 16 |
| Margin | 39,310 | 32 |
| Vat | 37,980 | 31 |
| TOTAL | 330491 | 272 |
However, in 2021, the expenses do not just end there. This information was compiled in 2016. And in a pandemic struck 2021, prices of individual elements have sky rocketed. Expenses such as material and labor costs now range between €150- €180 per sq ft, rising from the €101 in 2016. And when all costs are readjusted, with a few percentage points added to the other elements as well so that we can have an estimation, the results are as follows:
| Element | Cost in € | Cost per sq ft in € |
| Construction | 182100 to 218520 | 150 to 180 |
| Site works | 10100 to 10300 | 8.3 to 8.5 |
| Site development | 18,180 to 18540 | 15 to 15.2 |
| Professional fees | 5,555 to 5665 | 5 |
| Levies | 11868 to 12103 | 10 |
| Land and acquisition costs | 58075 to 59225 | 48 to 49 |
| Sales and marketing | 8,282 to 8446 | 7 |
| Finance cost | 20,402 to 20806 | 17 |
| Margin | 39703 to 40489 | 33 |
| Vat | 38360 to 39119 | 32 |
| TOTAL | 356892 to 433213 | 325 to 357 |
After increasing each individual cost by a range of 1% to 3% and factoring in the existing price increase to applicable elements, the chart reveals a staggering €100,000 possible rise in the highest end. Cost per sq ft has risen by €53 at the lower end whilst at the higher end the difference is €85.
House building costs in 2021 have risen exponentially. The pandemic and utter halt it caused many parts of the industry to come to has led to bloated prices. The hypothetical cost to build an average 1214 sq ft house in Ireland now ranges between €357,000 and €433,000.