Foundations for growth in Cork: key insights on housing and infrastructure delivery

With strong demand continuing to outpace supply, the discussion focused on the structural constraints limiting progress – from planning and infrastructure to funding and affordability – and explored the practical actions needed to accelerate delivery.

The session, moderated by Stephen Gahan, Tax Partner, brought together four expert panellists – Elizabeth Hegarty (New Homes, Savills Cork), Niall Morrissey (CEO, HISCo), Anne-Marie Linehan (Managing Partner, JW O’Donovan Solicitors) and Oonagh Carney (Head of Indirect Tax, Forvis Mazars). Drawing on their cross-sector experience, the panel shared practical insights on the challenges facing delivery and the opportunities ahead.

Across the panel, several consistent strategic themes emerged:

• Planning reform and infrastructure delivery are the primary levers for increasing housing supply.
• Affordability constraints are shaping demand and design.
• Collaboration across public and private sectors is essential.
• Complexity (planning, funding, tax) continues to increase, requiring specialist advisory input.

There was a clear consensus across the discussion: while demand and activity remain strong, systemic constraints continue to impede delivery.

Market dynamics and buyer behaviour

The residential market, particularly new homes, is being heavily influenced by affordability pressures and State supports:

• First-time buyers dominate demand, representing the vast majority of purchasers, largely driven by eligibility for government schemes.
• Government incentives (Help-to-Buy, First Home Scheme) are key drivers, with strong alignment between price caps (~€500k) and buyer budgets.
• Demand is shifting toward more affordable property types, particularly 3-bed homes, with a notable increase in demand for 2-bed units.
• Buyers are increasingly flexible on location, prioritising value and accessibility (e.g., commuter towns with rail links such as Mallow and Midleton).

Key takeaway: Affordability and State supports are shaping both pricing and product mix, with a growing emphasis on smaller and more accessible housing options.

Supply constraints and market challenges

Despite strong demand, multiple structural constraints continue to limit supply:

• Limited trading-up stock: A shortage of larger homes is restricting mobility within the housing market.
• Increasing density-led development is resulting in more apartments and compact housing types, sometimes misaligned with buyer preferences.
• Parking and EV infrastructure challenges are emerging as practical barriers in higher-density schemes.

At a broader level:

• There is a critical shortage of development land with planning permission, significantly constraining pipeline delivery.
• The planning process remains lengthy and costly, delaying activation of new sites.

Key takeaway: Supply constraints are multi-faceted, with planning delays, land availability and product mix all contributing to a constrained pipeline.

Infrastructure as a critical enabler

Infrastructure was consistently identified as a central bottleneck:

• Deficiencies in transport, utilities and servicing infrastructure are preventing development from progressing.
• Innovative funding and delivery models (e.g. infrastructure funding frameworks) are emerging to:
  • Deliver enabling infrastructure upfront
  • Spread cost repayment over time (e.g. linked to unit sales)
• Collaboration across stakeholders (developers, local authorities, funders) is critical to overcoming infrastructure barriers.

Key takeaway: Without significant improvements in infrastructure delivery and funding models, housing supply cannot scale meaningfully.

Planning and regulatory environment

Planning reform and regulatory processes remain central to improving housing delivery:

• The Planning and Development Act 2024 aims to streamline decision-making and accelerate strategic developments.
• Reforms include:
  • Enhanced capacity within planning bodies
  • Direct application routes for strategic infrastructure
  • Adjustments to judicial review processes to reduce delays
• Implementation is still ongoing and delays persist in practice.

Key takeaway: While reforms are positive, tangible improvements in timelines and certainty have yet to fully materialise.

Funding and economic pressures

Funding constraints continue to impact development viability:

• Limited participation from traditional lenders, with increased reliance on private equity and alternative funding sources.
• Rising construction costs and labour shortages add further pressure to project viability.
• Apartment delivery remains particularly challenged due to viability gaps, despite targeted government supports.

Key takeaway: Viability remains a core concern, particularly for higher-density developments such as apartments.

Tax and structuring developments

Recent tax developments are adding complexity to residential development:

• Changes in Revenue’s interpretation of Relevant Contracts Tax (RCT) legislation now requires:
  • Separation of land, construction and other services in contracts
  • Application of RCT only to construction services
• Increased complexity in structuring transactions, with implications for:
  • Withholding taxes
  • Contract drafting and pricing structures
• VAT considerations remain important, particularly:
  • Treatment of mixed-use developments
  • Apportionment requirements
  • Treatment of fixtures and fittings

Key takeaway: Tax compliance and structuring are becoming more complex and require early-stage consideration in development planning.

Conclusion

The Cork housing market remains fundamentally strong, underpinned by demand and population growth. However, the pace of delivery is constrained by systemic challenges across planning, infrastructure, funding and regulatory frameworks.

Addressing these challenges will require:

• Accelerated planning reform
• Scalable infrastructure solutions
• Innovative funding models
• Continued collaboration across stakeholders

Progress is being made, but meaningful increases in housing supply will depend on coordinated, multi-disciplinary action across the entire development ecosystem.

Contact us

If you would like to reach out to any of the panel members please see contact details below: