The surge in housebuilding over the past decade looks set to continue with a record number of units forecast to be completed this year.
The Construction Industry Review 2005 and Outlook 2006-2008predicts the industry will complete 90,000 units this year - nearly 10,000 more than last year.
The review - which is commissioned by the Department of the Environment, Heritage and Local Government - estimates the value of construction output in 2005 was €31.5 billion representing 23 per cent of total GNP.
Direct employment in the sector has now reached an unprecedented high of 264,300 workers.
The review said output in the private non-residential construction sector increased by 19 per cent in 2005, and it forecast a similar rate of increase this year.
Minister for Environment Dick Roche said: "House-building will continue to perform strongly for the foreseeable future underpinned by a strong economy, changing demographics and strong net inward migration."
He said momentum in the sector would be complemented by initiatives such as Transport 21, the housing commitments in Towards 2016 and the public capital investment arising out of new National Development Plan 2007-2013.
"While house building continues to be the pace-setter, commercial development and public investment are also performing strongly.
"In particular the strong investment in industrial, office and retail development signals a growing level of confidence which augurs well for the economy as a whole and indicates that Government policies are having the desired effect," Mr Roche said.
