A series of measures introduced by the Government following a slump in apartment building have led to an increase in the viability of blocks of flats, according to a study by the Society of Chartered Surveyors Ireland.
The report said, before any State interventions, only two of six categories of apartment buildings were viable. But after the supports were included, five of the six types were financially feasible.
In Budget 2026, the Government reduced the VAT on apartments as part of a range of measures to attract large investors to the sector.
However the surveyors' report found that, despite help from the State, affordability remains a huge issue for buyers.
Many of the Government supports for buyers are only available for apartments under €500,000.
The study said that sales prices for a two-bedroom suburban apartment range from €480,000 to €650,000.
To afford these, a first-time buyer couple would require a combined salary ranging between €108,000 and €146,000.
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.
