 The new apartment design guidelines were issued by the Government on 8 July, 2025.
There will be a number of potential savings that could be made on existing schemes, however, the savings will vary a lot from scheme to scheme, depending on the unit mix in each scheme. While the changes introduce some flexibility to apartment design, there is still an affordability gap and some financial support will be required to achieve viability prior to committing to a start on site. Our high level financial model looks to illustrate the quantum of savings that may be achieved per unit. Of course, one has to consider the impact on a total development of the new design guidelines and as such the overall mix of apartments will be critical. For example, the number of parking spaces will be closely linked to location and unit mix in addition to the price paid for land having to be apportioned across the total number of units. The VAT paid by a purchaser on an apartment designed to the new standard will still be high ranging from €40k to €66k dependant on unit type - this contributes to affordability issues for purchasers. The high level indicative cost model can be accessed here bit.ly/newapartmentstandardscost. Hope that it is useful and looking forward to getting feedback
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 The theory behind the recent changes to "Planning Design Standards For Apartments" is relatively simple:
1. Smaller Floor Area = Less Construction Cost 2. Less Dual Aspect and Amenity = Lower Complexity. Improved Efficiency 3. Simplified Planning ("permitted modifications") = Faster Timelines 4. Higher Density = Better Site Efficiency & Lower Per Unit Land Costs The caveat is around will the savings be passed on? The quantum of saving is not clear without detailed cost modelling of full developments, however, high level modelling of a consented 100 unit development gives indicative order of magnitude savings as indicated - these savings may not be quite as high as those noted at the standard's launch. Changing the mix on an owned site may also give additional savings on account of lower per unit land costs and possible improvements in nett:gross ratios - this prospective change is not without additional planning risk and programme impact. These savings will lead to improved affordability with lower household incomes required to purchase units. Removal of VAT would also lead to additional improvements as indicated. It will be critical in implementation to ensure that minimum quality, safety, sustainability and habitability standards are maintained given that small deviations from the new standards could make a small unit unlivable. Planning Permission will still be required. The "permitted modification" (the proposed s44B PDA 2024) only applies to altering an already permitted scheme in line with the new Guidelines. The only 'faster' element, therefore, is that a new substantive permission will not be required in order to effect such alteration. Ensuring that you have the correct project structures and processes in place to facilitate efficient project delivery is critically important to any property development business. In Ireland, the ratio of residential planning activations to completed units is approximately 1:2 in suburban areas and between 1:3 to 4 in urban areas. To achieve the target of 50,000 homes per year, the number of planning applications must double annually. Challenges to delivery includes the grant rate of planning applications, judicial reviews, infrastructure constraints, and financial viability. Developers need to focus on controllable factors to efficiently move a project through planning to site commencement. This paper offers strategies to manage these controllables effectively. With current uncertainty and volatility in the market it's important to review property projects and carry out a sensitivity analysis on a project's overall return by varying the original baseline assumptions. This may be particularly be the case where a project is distressed, being restructured or in advance of being offered for sale. Using as an illustrative example the case of the mixed use Camden Yard project in Dublin a sensitivity analysis should review the impact on return of as broad range of assumptions as possible in order to understand and quantify the risks in a project or ballpark what a site may be worth. With current uncertainty and volatility in the market it's important to continually review property projects and ensure the original assumptions and plan still holds true. From time to time a new plan needs to be developed to relaunch a project either by carrying out an internal review or by an external team looking to take over a project. The attached approach outlines how to carry out a strategic review of a project to develop a new plan to deliver the project |
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