January 2024 shows a decrease in new construction approvals

According to statistics released by the Statistical Office recently, there was a decline in the approval of new building projects at the beginning of 2024. 587 construction licences were granted by provincial and local governments in January 2024, according to Cystat. These licences, which are estimated to be worth €221.3 million, cover 198.2 thousand square metres and call for the building of 834 residential units.

There has been a little decline in building activity as compared to the same time last year, as seen by the 0.5% drop in the number of permits granted. Permit value decreased by 8.3% overall and floor space decreased by 2.4% overall. Notably, the number of proposed housing units has decreased by 11.1%.

Building permits are a key indicator of the performance of the construction industry going forward. It's important to note that, from 2199.2 million square metres in 2022 to 2294.9 million square metres in 2023, the total area of licenced projects increased by 4.3%. When compared to 2019 data, when the area of licenced projects was 2585.8 million square metres, there is a noticeable 11.2% reduction.

In terms of licenced projects, 2014 was the lowest point in history, which shows how building activity has varied over time.