CIS Blog

Medical and Care Residential Sector Activity: Q1-Q3 2016

Medical & Care Residential Sector

The Medical Sector has shown an increase in activity in the first 9 months of 2016. CIS estimate that over €1 billion's worth of projects have gone On-Site in Q3 2016 (Fig. 17). This is an increase of over 300% on the same period last year.

F 17

Fig. 17

This massive jump can be accredited to the €750m National Children’s Hospital where enabling works have begun for the new hospital at St James, Dublin. If we remove this hospital from our data we get a more modest 14% increase in project value for the period. In terms of the regional breakdown, all regions have shown growth for the 9 months.

17

The €750m National Children’s Hospital at On-Site Stage

Future Pipeline of Medical & Care Residential Projects

The number of projects which have been granted planning permission in the first 9 months of 2016 has fallen by 9% (Fig. 18), but when we look at from a value perspective, we see growth of 90% for the 9 months year on year, due to the National Children’s Hospital being granted permission in Q2 2016 (Fig. 19).

F 18

Fig. 18

A trend of decline in investment appears to be emerging with the number of projects granted planning down 24% to 56 in Q3 compared with Q2 2016. This trend can be further evidenced in Plans Submitted with a 17% decrease in projects for the first 9 months of 2016 when compared with 2015. 

F 19

Fig. 19

 

Civil Sector Construction Activity: Q1-Q3 2016

Civil & Utilities Sector

The value of projects On-Site in the first 9 months of 2016 has increased by 6% from €1.29 billion in 2015 to over €1.36 billion. However, as can be seen from Fig. 13, the growth is directly attributable to one or two large scale projects in Leinster.

F 13

Fig. 13

12

On-Site Gort to Tuam Motorway scheme

Only 8 projects over €10 million have commenced On-Site in Q3 2016, split evenly between wind farms and flood relief schemes.

Future Pipeline of Civil Sector Projects

Further government confidence in the economic recovery is likely to see more large scale projects being given the green light in the next number of years with over €610 million worth of Civil & Utilities projects being granted planning in the first 9 months of 2016. This is up from €490 million, or 25% in the same period in 2015 (Fig. 14).

F 14

Fig. 14

Two major projects account for €400 million of the total Plans Granted projects, in the form of the Ringsend Waste water treatment works extension and the Oweninny Wind Farm. Dublin has over 50% of the projects by value with Connacht with a further 20%.

14

Dublin's Ringsend Water Treatment Plant Extension at Plans Granted Stage

2016 has seen a surge in Plans Granted for renewable energy projects with 17 solar farms granted planning as compared to just 1 in the same period last year (Fig. 15). Unsurprisingly the south east has the majority of these projects.

F 15

Fig. 15

The number of projects submitted for planning in the first nine months of 2016 is up 45% on the same period last year with almost 200 projects in the sector. Leinster and Munster are the biggest regions in the sector by volume with 61 and 66 respectively.

F 16

Fig. 16

Top 10 Northern Ireland Construction Projects this Week

See below the top 10 most viewed Northern Ireland construction projects this week on our online CIS database. Customers have unlimited access to thousands of active construction projects on our system and CIS FREE users can view some of these projects as part of their allowance of 10 free leads per month. Find out more about out great value tailored subscription packages here

Banbridge College

Project ID

Project

Views

123680

£330m - A5 Western Transport Corridor

56

804193

£3.7m - School Extension

41

876235

£10m - College Development

37

810019

£10m - Non-Clinical Support Building

36

794169

£7.1m - Residential Development

33

887405

£2.1m - Theatre Project

32

795047

£2.3m - Visitor Centre Design and Build

31

760468

£6.4m - Redevelopment of Brandywell Stadium

25

875439

£2.8m - Portadown Linkages Works Project

25

818029

£1.4m - Business Units

22

Top 10 Republic of Ireland Construction Projects This Week

The table below shows the most viewed construction projects in the Republic of Ireland this week on our online CIS database. Customers have unlimited access to thousands of active construction projects on our system and CIS FREE users can view some of these projects as part of their allowance of 10 free leads per month. Find out more about out great value subscription packages here

Hotel

Project ID

Site Name

No. Times Viewed

888330

€100m - Manufacturing Building

173

133896

€750m - New National Children's Hospital

152

838910

€71.6m - Hotel/Office Development

152

878344

€13.6m - Motor Showroom

109

818520

€12m - Residential Development

105

855470

€7m - Hotel Extension

94

838908

€28m - Residential Development

75

859843

€15m - Student Residences Refurbishment - Framework

72

857225

€2.5m - School Extension

70

855084

€7.5m - Office Building

64

Industrial Sector Construction Activity Q1-Q3 2016

Industrial Construction Sector

CIS have calculated that over €600 million's worth of projects have gone On-Site in the first 9 months of 2016 which is a 175% increase on the same period last year (Fig. 9). However, a large part of this increase is due to a small number of data centres which have gone on site this year in Leinster and Dublin to some extent.

F9

Fig. 9

8

Facebook Data Centre in Clonee, Co. Meath at On-Site Stage

This volatility in the market makes it extremely difficult to recognise patterns in the sector. We may discern some analysis from looking at the number of projects in each period. 167 projects have gone On-Site in this period of 2016. This is up from 148 in the same period last year which is in turn up 39 projects from the previous period in 2014 (Fig. 10). 

F 10

 

Future Pipeline of Industrial Projects 

According to our research, the sector has grown by 10% when compared with the same period in 2015. As can be seen from Fig. 11, Dublin and Connacht have experienced significant growth with Ulster ROI showing a drop of €65 million in the period compared to last year. 

F 11

Fig. 11

Looking further down the line, we can see an increase in activity in the sector with the value of projects which had Plans Submitted in the first nine months of 2016, up by €60 million on the same period last year (Fig. 12). We estimate that over €750 million in projects have been submitted for planning in this period.

F 12

Fig. 12

To download our complete CIS Q3 Construction Market Review click here

Surge in Residential Construction Activity in Q4 2016

Our CIS Residential Researcher, Niall Gargan analysed and noted an upwards trend in On-Site construction activity in Q4 2016. Below are his findings.

The Residential Sector has experienced a late resurgence of activity as we approach the final weeks of 2016. As reported in November’s Q3 2016 activity report, Construction Information Services (CIS) confirmed that works have commenced on 11,550 residential units up until the end of September 2016. These figures fell largely in line with those of the same time period from 2015.

However, Q4 has witnessed a late surge in activity for the sector with an additional 2,538 units commencing in October alone. This brings the total number of units commencing On-Site to 14,088 units as we enter the month of November. Only 396 units of this October sum accounts for single one-off builds which shows that developers are once again beginning to take a chance on large phased schemes.

Building Site 1

If the housing sector was to sustain the 2,538 unit mark in a consistent manner over the coming months, then the Department of Housing’s goal of reaching 25,000 units per annum would be more than achievable. There are certain elements underlying the late surge in residential construction which will be outlined as we highlight some of the major builds during October 2016.

One of the notable factors during October 2016 is the fruition of long-term developers moving projects to On-Site with land they have been sitting on since the recession. Most prominently, Cairn Homes PLC have increased works on various sites around Dublin City.

Across three separate sites, Cairn Homes Plc accounted for 264 units commencing On-Site in October 2016. In Rathgar, at their Marienella site, they began works on the next phase of their ongoing development with two blocks of apartments comprising of 94 units. Works commenced originally on the development in May 2016 and when it is completed the overall site will be home to 275 units which will be an assortment of high-end apartments and houses.

In Dublin’s Docklands, Cairn Homes are acting as the developers for a lucrative residential development which is located on the Former Kilsaran Concrete Site at Hanover Quay. Bennett Construction are currently carrying out the construction works for them on this development which also went On-Site in October and will comprise of 122 apartment units upon completion. Finally, they have also commenced works on 48 housing units at Parkside on the Former Balgriffin Park Lands in Dublin 17. As works commenced on this development, the property developers also submitted a planning application for a further 94 housing units on the land adjacent to the one currently On-Site.

Construction Activity

On the Scholarstown Road in Rathfarnham, Dublin 16, Andrews Construction has commenced further phases of this large scale residential development. The site has full planning permission for up to 317 units and has been progressing at a consistent pace since beginning works on Phase 1 in April 2016. Meanwhile, in Saggart, Greenacre Residential Limited have commenced works on Phase 3 of their ongoing large scale development. Phase 3 will consist of 96 units and the overall site has planning permission for up to 224 units. Works originally commenced on this site in September 2015.

Elsewhere in the country, O’Flynn Construction have commenced works on a €24 million residential development with an initial phase of 21 houses at Knocknagore, Crosshaven in County Cork. The development site has permission for a total of 204 units. In Kinsale, Cfield Construction Limited commenced works on phase 1 of 11 units of a €14 million development. The overall development has planning permission for 161 units. Gannon Homes are the developers on this project.  

Social housing plays a factor in the increase of housing construction for October 2016. A notable development is the first phase of the Dolphin House Regeneration development. When the development is completed it will see the refurbishment of 72 existing units and the construction of 38 new units. The overall development, which will be carried out over four phases, is expected to cost in the range of €25 million and will be built by Purcell Construction.

Dolphin House

ABM Construction has started work on the delivery of modular home builds at two sites around County Dublin. After a turbulent pilot program in Ballymun last year, these two sites mark the beginning of the Government’s plans to expand the program around the county. At St. Helena’s Drive, ABM Construction will be building 40 modular homes and at Mourne Road and in Drimnagh they will be building 29 units. The two development sites are expected to be completed by Summer 2017.

The strong start to Q4 2016 will give the Residential Sector an air of renewed confidence as we approach the beginning of 2017. Based on the rate of construction being witnessed at the moment, a cautiously optimistic end of year figure for new residential builds can be projected to be around 16,000 new units for 2016. Under the Rebuilding Ireland Action Plan laid out by the Government over the summer, the onus by the Department of Housing to propel social housing in the next five years and long-term developers going On-Site with large phased schemes, Ireland could be on course to reach the 25,000 units per annum in 2017. 

 

Top 10 Most Viewed Construction ProjectS in ROI

The table below shows the most viewed construction projects in the Republic of Ireland last week on our online CIS database. Customers have unlimited access to thousands of active construction projects on our system and CIS FREE users can view some of these projects as part of their allowance of 10 free leads per month. Find out more about out great value subscription packages here

Greystones Harbour Development

Project ID

Project Name

No. of Views

777524

€2.5bn - Project Cherry

143

889512

€60m - Bio-Pharma Production Facility

139

829534

€28m - Mixed Use Hotel Development

128

878344

€13.6m - Motor Showroom

116

835767

€12m - Educational Campus

92

864546

€38m - Housing/Commercial Development

91

570499

€300m - Harbour Redevelopment

88

882838

€11.5m - Office Building

70

600406

€7.4m - Residential Development

66

772138

€227m - Redevelopment of the Alexandra Basin at Dublin Port

66

Top 10 Northern Ireland Construction Projects

See below the top 10 most viewed Northern Ireland construction projects last week on our online CIS database. Customers have unlimited access to thousands of active construction projects on our system and CIS FREE users can view some of these projects as part of their allowance of 10 free leads per month. Find out more about out great value tailored subscription packages here

Brandywell

Project ID

Project Name

Views

760468

£6.4m - Redevelopment of Brandywell Stadium

70

789874

£150m - A6 Dualling

45

819770

£3.6m - Mental Health Recovery and Rehabilitation Unit

38

816036

£3.1m - Ambulance Station

31

805155

£1.6m - Shared Apartments Hostel

29

834067

£30m - 4-Star Hotel

28

794169

£7.6m - Residential Development

26

863336

£27m - Student Accommodation Building

25

810019

£10m - Non-Clinical Support Building

19

848592

£2.2m - Design & Build New Primary School

19

Top 10 NI Projects on CIS Online Last Week

See below the top 10 most viewed Northern Ireland construction projects last week on our online CIS database. Customers have unlimited access to thousands of active construction projects on our system and CIS FREE users can view some of these projects as part of their allowance of 10 free leads per month. Find out more about out great value tailored subscription packages here

Grand Central Hotel

Project ID

Project Name

Current Stage

Views

834067

£30m - 4-Star Hotel

On Site

42

872422

£6.1m - General Property Maintenance Framework

Contract Awarded

37

873063

£1.5m - Offices and Childcare Facility

Contract Awarded

32

885320

£8m - Hotel/Retail Development

Contract Awarded

30

882017

£100m - Shared Education Campus

Tender

24

882215

£463K - Community Centre

Contract Awarded

20

797661

£500k - Riverside Walkway

Tender

19

882079

£544k - Integrated Consultancy Team

Contract Awarded

18

805187

£3.8m - Sports Hall/Changing Accommodation & New Classrooms

On Site

17

876240

£28m - College Development

Tender

17

The Construction Sector's Role in Supporting Strong Growth in the Irish Economy

As Irish economy continues to improve at a solid pace, and the construction sector is once again a key pillar in this sustained economic improvement, it will continue to play an important role in the country’s economic recovery, which is growing at the fastest rate in Europe.

The Ulster Bank Construction PMI rose to 58.7 in September 2016 from 58.4 in August, helped by quickening growth of new business. Rising workloads fed through to increases in purchasing activity and employment, while sentiment around the prospects for future growth remained strongly positive. Civil engineering saw a welcome return to growth, albeit at a weaker pace than the sharp rates of growth which continue to be reported in the commercial and housing areas. Total construction activity has now risen in each of the past 37 months. Construction PMI in Ireland averaged 58.52 from 2013 until 2016, reaching an all-time high of 68.80 in February of 2016 and a record low of 43.40 in June of 2013.

House Building


There has been numerous strategy documents published by Government in recent years, containing plans to tackle the deficit created in the construction industry during the recession. These are namely the Construction 2020 Strategy aimed at restoring a properly functioning  dynamic and sustainable Industry; the 

€3.8 billion Social Housing Strategy outlining how the provision of 35,000 social housing units will be delivered by 2020; the Capital Investment Plan for 2016–2021 which promises to provide €42 billion for key public sector infrastructure projects and support over 45,000 construction related jobs, and the latest announcement of €5.5 billion for social housing and infrastructure.
According to a recent report from DMK Economic Consultants for the Construction Industry Federation (CIF) the overall volume of construction output is forecast to increase by 12.5% this year, followed by 8.5% in 2017 and 7.1% in 2018. The average annual growth rate in the period 2016 – 2020 is projected at 9.1%.

There is a substantial pipeline of projects at all stages from pre-planning through to commencing On-Site in the Residential, Commercial and Industrial sectors in particular This is as a result of the country’s continuing economic recovery from late 2013 and increasing population. The sector is set to embrace the most positive forecast in over a decade.

Capitol Dock

The management of this renewed confidence is dependent on the continued focus in addressing the availability of skilled construction workers; the provision of finance for the funding of private sector projects; the removal of unnecessary delays in delivering on the aforementioned housing and capital strategy plans; the capacity of Tier One contractors to deliver the approved projects; tender price inflation and contingency planning for any potential impacts as a result of Brexit.

Finally, the recent Bulletin from the Central Banks contained the first post Brexit forecast for the Irish economy, which stated that GDP will grow by 4.9% in 2016 and 3.6% in 2017. This is a reduction of 0.2% and 0.6% respectively in each year on their earlier forecast. The Central Bank, despite these downward projections as a result of Brexit, remains broadly favourable on the outlook for the Irish economy in the short-term.

Download the CIS Q3 Construction Market Review for a comprehensive overview of construction activity and future pipleines for each sector of the Construction Industry in the Republic of Ireland. Call CIS on 01 2999 200 for more information on our statistical reports or to ldiscover how we can help boost your leads for business in the construction industry!

Q 3 Stats Report Front Cover

3523 construction projects with a total value of €24.3 billion have been added/updated to our comprehensive dataset in the last 100 days. Gain access to the details of all these projects and more

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