Only the top 20% of earners can afford to rent an average apartment built in Ireland in 2025, while just the top 40% of earners can afford to buy one.
That’s according to the Society of Chartered Surveyors Ireland’s (SCSI) latest Real Costs of New Apartment Deliver report which was released on Tuesday.
The first in the series since 2021, the report shows buyers face a sizeable affordability gap with sales prices for a 2 bed apartment ranging from €480,000 in suburban medium-rise schemes to €650,000 in an urban development.
To afford these, a first-time buyer couple would require a combined salary ranging between €108,000 and €146,000.
The report noted that before any State interventions only two of six categories of apartment buildings were viable but after they reduced the VAT on apartments as part of a range of measures introduced in Budget 2026, five of the six types were now financially feasible.
However the surveyors' report found that, despite help from the State, affordability remains a huge issue for buyers with many Government supports only available for homes under €500,000.
It means the Government’s Help to Buy and First Home schemes are unavailable for a large proportion of the 11,000 apartments included in the SCSI’s study, because their sale price is above the price threshold.
Paul Mitchell, a co-author of the report, said the affordability gap prevents most average income earners from accessing apartment supply without significant government supports.
"Based on CSO figures only the top 20% of earners in Ireland can afford to rent an apartment, only the top 40% can afford to buy an average apartment, while the cost rental scheme, which has defined parameters, is targeted at couples earning less than €59,000-€66,000 net."
The study found total development costs for some apartment buildings had increased modestly by between 4% and 6% over the past five years.
The cost of building a two-bed, medium-rise apartment increased in an urban area increased from €493,000 to €523,000. However, there was a 32% surge in the costs for apartments in suburban areas, from €411,000 to €541,000 per two-bedroom units, due to the change in apartment buildings being developed.
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