Andy Brainin, director at South Hill Capital, gives his view on the solutions needed to reverse Dublin’s housing shortage.
Interest from global businesses in Dublin is creating continued demand for commercial and residential space in the city.
However, the current housing system and planning regulations are preventing the supply of residential property from keeping pace with demand. Despite efforts by the Government and construction firms to boost housing provision, there is still a real lack of new homes coming to the market, especially at the mid to lower end.
Overhauling the planning system to make it easier and quicker for developers to build new homes, as well as implementing measures to make land available at lower prices, will go some way to aiding the shortage but more innovative solutions must be considered.
One possible short-term solution is to look at converting existing properties into co-living spaces, allowing areas with high population density to house a greater number of people.
Already a successful model in other parts of the world, it remains largely untested in Ireland. Co-living is a fast-growing area in London and New York, where private investors and venture capitals are eager to tap into the market, thanks to the healthy returns on offer. This type of living is only going to become more popular with the younger generation who are priced out of buying their own homes.
Dublin’s Victorian and Georgian buildings would provide great opportunities for the development of dynamic living spaces but, while some developers in Ireland have made the leap, many are cautious of the costs involved in addressing existing planning regulation.
It is now up to government officials to follow through on the promises made in the ‘Construction 2020’ whitepaper and streamline the planning and appeals process to ensure building proposals can be implemented faster and with greater ease. More should also be done to encourage developers, investors and local authorities to consider innovative solutions to solve the housing shortage.