Galway’s housing commencements plummet by 97 per cent in 2025

Galway has experienced a dramatic fall in housing commencements in early 2025, despite a modest rise in completed dwellings. According to figures from the Department of Housing, Local Government and Heritage, just five commencement notices were filed in Galway city between January and April 2025, with 146 in the county, representing a 97.7 per cent drop in the city and an 80 per cent drop in the county compared to the same period in 2024.

In contrast, last year saw 222 commencements in the city and 753 in the county during the same four-month span.

The local figures reflect a national slowdown in commencements, which groups like Planning Permissions Ireland have called “concerning.”

A commencement notice (CN ) is a statutory document that notifies the Building Control Authority of an intent to begin construction. It is considered by the Government to be an early indicator of housing activity. In a balanced housing market, the ratio of commencements to completions should average near 100 per cent. By law, CNs should be issued no later than 14 days and no earlier than 28 days before works begin.

In 2024, CNs surged to around 60,000 nationally, a spike largely attributed to developers filing notices in order to avail of waived development levies and water connection charges. These incentives, which were set to expire in early 2024, were later extended — but not before prompting a flood of applications.

Planning Permissions Ireland explains, “This created a spike, despite no obligation to begin building immediately. Filing a commencement notice is relatively low-cost, allowing developers to secure the financial benefits without committing to construction.”

As a result, 2024 may now be seen as an outlier, with 2025 figures falling sharply in comparison. This year’s commencement activity is among the lowest seen in a decade.

Sinn Féin TD for Galway West, Mairéad Farrell, criticised the use of CNs as a measure of progress, saying that the rising figures of CNs issued in 2024 gave false hope to those locked out by the current housing crisis.

“We now know that the government knew in advance of the election that they had fallen well short of their housing targets, but they kept this from the public. There is no sign of any change since then,” she said.

“By using commencement notices as a proxy for new builds, it exaggerated the level of building taking place. However, if you do want to build, then generally you need a commencement notice, so they can be an accurate indicator that the level of new building is falling. We have a new housing Minister, but the same approach to housing.

“We shouldn’t expect any change in this soon. We’ve long had a deliberate undersupply.”

Despite the decline in commencements, Galway recorded positive figures for newly constructed homes. The western region, covering Galway city and County, Mayo, and Roscommon, saw a 5.8 per cent increase in completed dwellings in Q1 2025.

Galway City had 89 new dwellings completed (7 single houses, 31 scheme houses, 51 apartments ), with Galway City East leading at 58 completions. Galway County recorded 214 completions, with Athenry/Oranmore seeing the highest at 73. Scheme houses dominated at 108, followed by 91 single houses and 15 apartments.

While completions are rising modestly, the sharp drop in commencements signals ongoing uncertainty in the housing sector for Galway and beyond.

 

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