Housebuilder Cairn Homes said it expected total build cost inflation for 2022 to reach up to 7 per cent as labour and materials prices rise.
That would add up to €17,000 to the cost of a unit, the company said.
But Cairn reaffirmed its annual outlook, anticipating turnover of more than €600 million from 1,500 closed new home sales and €100 million operating profit.
The company said it saw its strongest ever first-half sales period, agreeing the sale of more than 750 homes for more than €295 million, and closing 547 new home sales.
Cairn plans to announce a €20 million dividend as part of its interim results announcement in September.
“Continued reinvestment in increased new homes output remains our core strategy. Our current performance and profitability in a challenging environment has allowed us to commence a significant number of new developments. Today, we are building in 20 separate locations nationally with 1,750 closed and forward sold new homes across these developments,” said Michael Stanley, Cairn Homes’ chief executive.
“The standard and quality of new homes being built in Ireland today is appropriately high. However, rising material costs have further stretched the affordability gap for the current generation of homebuyers. In the present environment, new homes output would materially reduce without the sensible Government interventions for first-time buyers, including the First Homes initiative and Croí Cónaithe.”
(c) Copyright Thomson Reuters 2022
