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:

ElementCost  in €Cost per sq ft in €
Construction122,251101
Site works10,0008
Site development18,00015
Professional fees5,5005
Levies11,75010
Land and acquisition costs57,50047
Sales and marketing8,2007
Finance cost20,20016
Margin39,31032
Vat37,98031
TOTAL330491272

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:

ElementCost  in €Cost per sq ft in €
Construction182100 to 218520150 to 180
Site works10100 to 103008.3 to 8.5
Site development18,180 to 1854015 to 15.2
Professional fees5,555 to 5665
Levies11868 to 1210310
Land and acquisition costs58075 to 5922548 to 49
Sales and marketing8,282 to 84467
Finance cost20,402 to 2080617 
Margin39703 to 4048933 
Vat38360 to 3911932 
TOTAL356892 to 433213325 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.