The State will have to build 25,000 apartments a year to meet its housing targets, Cairn Homes chief executive Michael Stanley has said.
“If we want to get from 30,000 to 60,000 homes, most of the increase is going to have to come from apartments because we simply don’t have the land available to build low density housing,” Mr Stanley said.
He was speaking after Cairn Homes published its latest interim results showing after-tax profits fell by almost a third to €31.7 million in the first six months of the year.
The homebuilder, which celebrated its 10th anniversary in June, saw revenue fell by 22 per cent to €284.5 million but Mr Stanley said the first half of the year was always slower for completions.
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On the broader issue of housing, he said 88 per cent of the available residentially zoned land has a relatively high density specification.
“What that means is that you cannot design a scheme that does not have a significant portion or all apartments,” he said.
“Why is that important? There is only one route to the Government hitting their housing targets [apartments],” he said.
Mr Stanley noted that there were up to 35,000 apartment units with planning in the system that were not viable without private capital.
He commended Government measures such as the Croí Cónaithe scheme, which funds apartment building, changes to apartment design standards and changes to rent pressure zones, which he said were designed “to crowd in private capital”.
Cairn said its latest results equated to a basic earnings per share of 5.1 cent, which was down from 7.2 cent in the same period last year, while insisting its trading performance was in line with expectations.
The average selling price of its closed units, excluding VAT, was €387,000. The decrease of just €1,000 reflected the ongoing delivery of competitively priced new homes to first-time buyers and State partner markets, the group said.
Cairn said demand across all buyer profiles remained “exceptionally strong” over the period.
Cairn started 2025 with a multiyear forward order book of 2,361 new homes with a net sales value of about €910 million, which has increased to 4,092 new homes with a net sales value of €1.54 billion as of September 2nd.
The company said a competitive mortgage market, impactful State supports for first time buyers, and strong personal savings are driving positive momentum in its core first time buyer market.
The group launched eight new schemes over the period across Dublin, Kildare, Meath, Cork and Galway, with strong demand witnessed.
Cairn upgraded its guidance for the full year 2025 on the back of “exceptionally strong” sales momentum, together with the success of its scaled procurement and innovation strategy.
It now expects to generate revenue of €945 million, as well as operating profit of up to €165 million, up from a previous estimate of €160 million.
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“Our continued investment in scaling is building a stronger business that will enable us to continue to grow our annual volumes and profitability,” it said. The company added that it remains confident about its future growth prospects.
It guided that it expects to generate revenues of more than €1 billion in 2026, as well as an operating profit of between €175 million and €180 million.
Mr Stanley said the company has a market cap of €1.35 billion, with more than 30,000 people now living in a Cairn home.
“I am also very pleased to report that the business is performing strongly, our strategy is working, and we have doubled down on investment in our construction activities,” he said.
“As this unwinds, it will lead to a strong second half which is why we are raising our guidance today for 2025 and also introducing new guidance as a result of increased housing output for 2026.
“In keeping build cost inflation under control, maintaining average sales price consistency, and placing a strong emphasis on energy efficiency, a well-designed Cairn home represents an attractive proposition for first-time buyers.”
He added that the delivery of cost-effective new homes for the group’s State partners, in mainly scaled apartment developments, is playing a “critical role” in addressing the housing crisis.
