Stalled city developments may finally move, if Croí Cónaithe is used well.
By Conor Steen, Hooke & MacDonald
Across Ireland’s cities, many fully permitted apartment schemes remain inactive. Not because of planning delays or weak demand, but because the numbers no longer add up.
These are not fringe or speculative proposals. Most are well-designed, well-located, and would meet strong buyer interest. But with construction costs rising, finance still expensive, and private sale prices failing to cover outlay, viability has collapsed. The result? Shovel-ready projects stuck in limbo just as the need for urban housing hits critical levels.
The Government’s Croí Cónaithe (Cities) Scheme, managed by the Housing Agency, is aimed at addressing this. It provides viability support to help private developers build apartments for owner-occupiers, homes that would otherwise be unviable without subsidy.
The scheme is limited to five cities: Dublin, Cork, Limerick, Galway and Waterford. It offers a subsidy of up to €120,000 per apartment in Dublin and up to €144,000 in the regional cities (inclusive of VAT), helping to bridge the gap between build costs and market values. It is not a social or cost-rental initiative. It is targeted at enabling more homes for first-time buyers and downsizers.
The Viability Crunch
Viability is now the biggest barrier to apartment delivery in Irish cities. Labour, materials, finance and compliance costs have soared. At the same time, investor appetite has cooled and private purchasers are constrained by affordability thresholds and mortgage rules. For many developers, margins have evaporated.
Schemes that once relied on PRS or forward-sale models are no longer feasible. For owner-occupier projects, delivery simply does not stack up without targeted intervention.
A Targeted Intervention
Croí Cónaithe closes the funding shortfall by offering viability support that reflects the specific gap in each project. It applies only to fully permitted developments in locations close to public transport and services.
This is one of the most focused and potentially impactful housing measures the Government has introduced. It is anticipated that up to 5,000 apartments could be delivered under the scheme, with a potential funding requirement of up to €450 million.
Market Momentum Is Building
At Hooke & MacDonald, we are seeing a noticeable change in sentiment. Developers who had shelved projects due to cost pressures or lack of funding certainty are actively re-evaluating them.
In some cases, the scheme is prompting a shift away from forward-sale strategies and back towards individual private sales. With viability support in place, schemes that previously showed no margin can now proceed at scale and with confidence.
A Narrow Window to Act
The current expression of interest deadline is 5pm on 15 August 2025. While further rounds may follow, this one is open now.
With planning secured, demand evident and delivery teams in place, this is a rare opportunity to re-energise stalled urban housing supply.
We are working with clients to assess eligibility, test financial viability and structure delivery strategies. With over 50 years of experience in new apartment sales across Ireland’s cities, we have a clear view of what is achievable.
Croí Cónaithe will not fix the housing crisis. But for the right schemes, it may be the difference between progress and paralysis.
Conor Steen
Associate Director
Hooke & MacDonald
Source – Businesspost.ie
Croí Cónaithe (Cities)
At a Glance
- What it is: A Government scheme to support private apartment delivery in cities
- Name meaning: “Croí Cónaithe” translates to “Heart of Living” a reference to bringing people back into the heart of Irish cities
- Where it applies: Dublin, Cork, Limerick, Galway and Waterford
- Who it’s for: Owner-occupier buyers (e.g. first-time buyers, downsizers)
- What it offers: Up to €120,000 per apartment in Dublin, rising to €144,000 in regional cities where viability gaps are larger (inclusive of VAT)
- Minimum scale & density: Minimum of 20 units with a net density of at least 35 dwellings per hectare
- What’s eligible: Fully permitted, shovel-ready schemes located near public transport
- Who runs it: Managed by the Housing Agency
- Deadline: Expression of interest closes 5pm, 15 August 2025
- Not included: Does not apply to social or cost-rental housing