Weak foundations: Economic recovery has allowed revenue to recover from a low base

Real estate development is a business process which unites the financial and capital resources required to complete a building project. For self-owned developments, operators in the Building Project Development industry acquire land or derelict property and subsequently sell or re-lease it to end clients once developed. For third-party developments, operators develop property on behalf of clients that retain interest in the assets upon completion. Debt attached to property assets, exacerbated by global financial downturn, was labelled one of the main causes of the Irish property market crash in 2007. Since then, developers have faced a volatile operating environment characterised by solvency pressures, state intervention. and economic recovery...read more.

Industry Statistics & Market Size
Revenue
£3.1bn
Annual Growth 13-18
13.7%
Forecast Growth 18-23
Profit
Employment
2,271
Businesses
3,112
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Growing demand for real estate has created a housing shortage, driving up property prices
  • Inward investment has driven growth in the number of industry enterprises over the past five years
  • Concerns have formed over another property bubble as credit growth has begun to surge
  • Industry Report - Starting a New Business Chapter

    The Building Project Development industry has relatively low barriers to entry. Budding developers must establish a source of financing, whether it be bankrolled by debt finance or investor equity, which will cover all costs associated with a pre-planned real estate development for the duration of the project. Given that financiers and banks are typically risk averse when considering ventures that require significant investment, potential developers that lack reputability may not be awarded loan approval. Without a supportive financial backdrop, prospective developers will not be able to afford all the resources required to complete a build project and will, in turn, face insolvency. Aside from sourcing adequate financial capital, however, there are no significant barriers to entry. For...purchase to read more.

    Additional Insights for the Building Project Development Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Building Project Development Industry are

  • Access to the necessary amount of land/type of property
  • Ability to effectively communicate and negotiate
  • Having good working relationships with subcontracting building trade specialists
  • IBISWorld analysts also discuss how external factors such as Business sentiment index and ECB Marginal Lending Rate in the Building Project Development industry impact industry performance..

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    What's in this report

    What is the Building Project Development in Ireland Industry?

    Property developers consolidate financial, technical and material resources required to complete residential and non-residential construction projects. This industry excludes the construction phase of building projects.

    Industry Products
  • Self-owned developments
  • Third-party developments
  • Industry Activities
  • Developing residential real estate
  • Developing non-residential real estate
  • Procuring financial capital and labour resources for construction projects
  • Re-leasing and selling developed property
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business sentiment index
  • ECB Marginal Lending Rate
  • Gross Domestic Fixed Capital Formation
  • House price index

  • Current Performance
    Spiralling debtPost-crash recoveryOverheating market
  • Chart: Revenue Growth

  • Industry Outlook
    Market concernsFuture opportunities
  • Table: Building Project Development Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Building Project Development Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores in Ireland
  • Hotels in Ireland
  • Estate Agents in Ireland
  • Consumers in Ireland

  • Key Selling Industries
  • Architectural Activities in Ireland
  • Building Construction in Ireland
  • Consultant Engineering Services in Ireland
  • Demolition & Site Preparation in Ireland

  • Products & Services
  • Self-owned developments
  • Third-party developments
  • Chart: Building Project Development Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Non-residential
  • Chart: Major Market Segmentation for the Building Project Development Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Subcontractor payments
  • Purchases
  • Land acquisition
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Building Project Development

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Building Project Development Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Building Project Development Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Building Project Development Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bad Bank
  • A financial institution that isolates high-risk assets held by a bank.
  • Brownfield Land
  • A term used in urban planning to describe any previously developed land that is not currently in use, whether contaminated or not.
  • Celtic Tiger Era
  • A period of significant growth in the Irish economy between the early 1990s and the mid-2000s.
  • Flip
  • A term used in real estate markets to describe the quick sale of revenue-generating property assets for a profit.
  • Greenfield Land
  • A term used in urban planning to describe undeveloped land in a city or rural area.
  • Real Estate Investment Trust
  • An entity that owns and, in many cases, operates income-producing property and real estate.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Building Project Development in Ireland market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Building Project Development in Ireland:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Building Project Development in Ireland market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Building Project Development in Ireland, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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