Property consultants Savills have welcomed the launch of a €350m fund by AIB for the construction and supply of new homes Dublin, Cork and Galway.

Commenting on the announcement, John McCartney, Director of Research at Savills said, “The severe shortage of stock in Ireland’s larger cities is forcing up the price of new homes. Last year, fewer than 1,400 new homes were built in Dublin. However, to meet pent up demand and a growing population, Dublin requires around 7,000 per annum. At national level the requirement is approximately 25,000.

David Browne, Head of New Homes at Savills Ireland said, “The launch of this development fund is very timely as the supply of new homes continues to be restricted. On the ground, we are seeing strong demand for the development of new stock in South Dublin, pockets of North Dublin and a resurgence of interest in West Dublin and North Wicklow. In Cork, units in the few remaining new home schemes have attracted very active bidding which has resulted in significant price increases. There are a number of sites in Cork City and prime suburbs that are ripe for development. Now is the time to start building again.”