Cairn Homes Offers €28.6 Million for Social Housing in Dublin

Cairn Homes has proposed to sell 51 apartments to Dublin City Council for €28.58 million as part of its broader €295 million development plan on former RTÉ lands in Donnybrook, Dublin 4. This initiative is part of Cairn’s commitment to fulfill its social housing obligations under the planning regulations for its Project Montrose scheme.

The 51 apartments, which include one and two-bedroom units, are detailed in the planning application submitted by Cairn Homes Montrose Ltd. The final pricing for each apartment will be agreed upon between the developer and the city council once planning permission is granted for the revised development scheme.

The documentation related to the Large Scale Residential Development (LRD) application reveals that the indicative prices for the apartments range from €644,896 for the priciest two-bedroom unit to €482,436 for the most affordable one-bedroom unit.

Cost Breakdown Provides Insight

A closer look at the costs associated with the €644,896 apartment shows a build cost of €329,998. Additional expenses include site costs of €13,135, indirect costs of €72,380, professional fees of €27,720, development contribution costs of €22,886, finance costs of €68,880, and VAT amounting to €52,814. Notably, this breakdown indicates a profit margin of €28,529 on the high-end unit.

Cairn Homes has highlighted the context of the Donnybrook location, which is known for some of the highest residential property prices in Ireland. The current planning application proposes a reduction of 98 units from the previously approved scheme of 608 apartments, which received approval from An Bord Pleanála in July 2023. The earlier plan included a mix of 336 build-to-rent units, while the current proposal excludes any such apartments.

Ongoing Development Progress

According to a planning report submitted by McGill Planning on behalf of Cairn, construction has already begun on the site. Demolition of permitted structures has been completed, ground clearance is finished, and work on Block 10 has progressed to the first floor, with the structure for the second floor currently underway.

The 2023 planning permission was a split decision, with the refusal of Block No 5—a proposed 16-storey tower intended for hotel use—prompting the new application. The report specifies that the approach to the refused block “will be the subject of a separate planning amendment application.”

As Cairn Homes moves forward with this significant development, it aims to address the pressing need for social housing in Dublin while navigating the complex planning landscape.