The national average cost of rebuilding a home has risen by 6.2% in the last year.
That is lower than the 12% increase recorded last year and the 21% seen in 2022.
But the new research by the Society of Chartered Surveyors Ireland (SCSI) found that the rate of growth in rebuild costs over the last year varies considerably depending on location.
In Dublin, the average cost including demolition and site clearance remains the most expensive of anywhere in the country, but is up the least amount, just 3% on 2023.
In the north-west of the country, on the other hand, average rebuild costs are the lowest in the State, but are up 10% on last year.
Elsewhere, average rebuild costs are 4% higher year on year in Galway, 5% up in Limerick and 6% greater in Waterford.
While in Cork and the north-east they are 8% higher.
“Higher increases were reported in Dublin some years back and it clearly has the highest rebuild costs now,” said Chartered Quantity Surveyor. Kevin Brady.
“This probably explains why the rate of increase there is somewhat lower, but demand for builders in Dublin and the commuter belt remains very high.”
“Cork has experienced a boost in activity over the past two years and that is reflected in higher rates there.”
“Similarly, the north-east is experiencing significant development and the increased pressure on labour and availability of builders has we believe resulted in an increase in rates in this region also.”
Costs of rebuilding a 3-bed semi-detached home vary from around €247,744 in the north-west to €312,620 in Dublin, with increases of between €9,408 and €22,540 in just a year.
Covid-19, the Ukraine war, high energy prices and supply chain issues have all pushed the cost of construction higher in recent years, though the SCSI said some shortages and supply problems have resolved.
“However, we are continuing to see increased costs in labour intensive tasks such as demolition and disposal of waste material while skill shortages across plumbing, electrical, heating and other trades are also contributing to increased costs,” Mr Brady said.
“SCSI members are saying the demand for builders throughout the country remains at an all-time high and this is also a contributory factor to the increases we are seeing in this year’s figures.”
“The introduction of the concrete levy has increased the cost of pre-cast and pouring concrete while the introduction of two new levies on waste and disposal in September is likely to increase costs going forward.”
Launching its latest House Rebuilding Guide, the SCSI underlined the importance of home buildings insurance cover being adequate, because if it is not the owner may have to pay a portion of the reinstatement cost.
“If the actual rebuilding cost of a property is €400,000 but the sum insured is for €200,000, that property is massively underinsured,” said President of the SCSI, Kevin Hollingsworth.
“In the result of a genuine claim for damage covered under the policy of €90,000 being made, the insurance company payout will only be €45,000 as the policy holder was 50% underinsured.”
Article Source – Average home rebuilding costs climb 6.2% in the last year – RTE
