Introduction
Residential house-building
Commercial construction
NI Government Policy
The NI Planning Service
Abbreviations / Definitions

Insights and Opportunities
Environmentally friendly construction
Expenditure on affordable housing to grow
PFI opportunities
Folds and retirement villages
Tourist accommodation

Summary of Key Findings
Construction industry worth €42.3 billion
RoI economy heavily reliant on construction industry
Property price growth has resulted in affordability issues
Unsustainable private housing growth in RoI…
... Residential oversupply not an issue in NI
NDP to counteract slowing residential market in RoI
NI strategic investment
Private sector to deliver commercial growth in NI
Urban regeneration driving demand
Planning legislation holding back NI development
House prices a concern!
RoI residential market can expect more modest growth
Population dynamics driving demand
Strong economies provide good foundation

Market Background
Key points
Structure of the industry
Regulatory bodies
Planning services
Local authorities implement RoI planning policy
NI planning policy implemented by the Planning Service
Building Control
Employment and New Construction
RoI – Employment in the construction industry
RoI – The value of construction
NI – Employment in the construction industry
NI – Mixed performance in construction
Costs associated with construction
Figure 1: National house building cost index, RoI, 1991-2007

Industry Views
NI viewpoint
RoI viewpoint

Internal Market Environment
Key points
Driving forces
National Development Plan driving the RoI market
Peter Robinson’s Investment Plan for NI
House prices have peaked
Figure 2: Average House price, RoI and NI, 2000-07
Is the property market boom over?
Residential construction market expected to slow
Urban renewal business to be driven by public sector in NI
Urban renewal schemes driving market in NI
Poor housing generating demand
Repopulating Belfast City Centre
Home improvement grants
RoI industry also benefits from urban renewal policy
Lack of development land available in NI
NI planning laws affecting development
Figure 3: planning applications in NI, 2001-06
Energy efficiency a key driver
Development policy in RoI
Use it or lose it approach by planners in RoI
Figure 4: Supply of development land by number of housing units available, RoI, 2000-05

Broader Market Environment
Key points
Population changes
Average household size falling
Figure 5: Number of persons in household, NI, 2002-06
Figure 6: Number of persons in household, RoI, 1996-2006
Immigration driving demand for construction
Figure 7: Non-national residents in RoI, by country, 2006
NI – Significant Eastern European population
Figure 8: Number of people coming to live in Northern Ireland by country of last residence (Mid 2004 to Mid 2006)
Retirement developments a growth area
Figure 9: Population change by age group, RoI, 2000-2020
Tourism to drive construction in hospitality industry
Economic growth
Steady growth in NI economy
Figure 10: Health of the economy, NI and RoI, 2002-07
RoI economy still enjoying strong growth
Interest rates affecting investment
Figure 11: UK and EuroZone Interest Rates, 2002 - 2007

Market Value and Forecast
Key points
RoI market worth ¼ of GNP
Figure 12: Estimated Value of construction market, NI and RoI, 2001 - 2012

Future Outlook
Repair and maintenance to generate demand
Housing market correction may restore order
Government spending to determine size of industry
Could the credit crunch impact on construction projects?

Market Segmentation
Key points
New private sector housing accounts for half of RoI market
Figure 13: Market segmentation, NI and RoI, 2006
Growth in private housing sector expected to slow
Figure 14: New private sector housing market size, 2001-06
Strong growth in public sector residential housing
Figure 15: New public sector housing, 2001-06
Non-residential
Booming demand for out-of-town retail has driven market
Figure 16: New work, non-residential private and public sector, 2001-06
NDP capital projects will drive the industry
Market for repair and maintenance to grow
Figure 17: Repair and maintenance work, 2001-06

Supply Market
Figure 18: Profiled suppliers including turnover data, RoI and NI, 2007
Selected RoI suppliers
Ballymore
G&T Crampton Ltd
John Sisk & Son Ltd
McInerney Holdings Plc
Ollie Kenny Ltd
Pierse Group
Shaw Street Developments
Selected NI suppliers
Atkins
Conway Group
Farrans
John Graham (Dromore) Ltd
KWCL
Mivan
McAleer and Rushe
The McGinnis Group
McLaughlin and Harvey Limited
Figure 22: Mclaughlin and Harvey Limited projects
O’Hare and McGovern
Patton Group
TAL Limited
Turkington Holdings

Buyer Market
Government – capital investment projects
Summary
Figure 19: RoI and NI government investment
RoI
National Development Plan 2007-13
Roads sub-programme
Airports sub-programme
Public transport sub-programme
Dublin Port Tunnel
Housing programme
Dublin Docklands Regeneration
Government infrastructure sub-programme
Sports sub-programme
Cultural sub-programme
Built Heritage sub-programme
National Conference Centre
NI
Strategic Investment Board
10-year plan
Two new schools
Hospitals to benefit
Funds may be available to RoI
Northern Ireland Sports Stadium
Northern Ireland Water
£100 million upgrade of Belfast sewers
Upgrading of 40-year-old water main system
Reconfiguration along north coast
Another £300 million worth of improvements planned
Northern Ireland Road Service
Over £650 million of road improvements planned
Private sector projects and opportunities
RoI
Mixed development
Lakeside Development
Osberstown Development
Torc Great Southern Development
Kilrush Marina
Retail developments
Dundrum Town Centre Phase II
Major developments proposed for Tralee, Co. Kerry
Further development approved for Donegal Town
€100 million centre for Co. Wicklow
Large investments planned for Galway City
€700 million Northern Quarter Scheme bidding nearing an end
Largest retailer in RoI, Tesco, continues to grow throughout Ireland
NI
Mixed development opportunities
Gateway Development Belfast International Airport
Titanic Quarter Development Phase II
Ilex Development
Hotels
Residential
Retail development
IKEA Development
Victoria Square
£300 million regeneration of North East quarter in Belfast
Uncertainty remains over John Lewis centre
New retail park for Castlebawn
Bridgewater Park
Spires retail park phase 3 to begin in spring 08
Continuation of Park Centre expansion in Belfast
Industrial developments
Plans to extend Tyrone Crystal site

Appendix
Geographical, national and regional definitions
Conversion factors
Figure 20: Population of RoI and NI, 2004
Figure 21: Exchange rate, 2001-12
Additional demographic data tables
Figure 22: Forecast population change, in thousands, by age, NI, 2000-20
Figure 23: Forecast population change, in thousands, by age, RoI, 2000-20
Figure 24: Percentage in employment, by age group, NI and RoI, 2000 and 2005
Figure 25: Average number of hours worked a week, by gender and working status, NI and RoI, 1998-2005
Figure 26: Summary of construction industry expenditure, NI, 2000-06