The Chartered Institute of Building (CIOB) has responded to yesterday's Budget 2027 announcement in Ireland. 

Overview of budget 

Budget 2027 provides for an €8.65 billion package, comprising approximately €7 billion in additional spending and €1.65 billion in tax measures. 

The Government has committed significant additional funding to housing and infrastructure, including €3 billion for the delivery of social housing and more than €1 billion for starter homes and affordability measures. 

A further €4.2 billion will be allocated through the National Development Plan to projects including DART+, BusConnects and Cork Area Commuter Rail, while an additional €6 billion is being allocated between 2027 and 2030 to progress MetroLink. 

The Budget also includes more than €650 million for home energy upgrades through the Sustainable Energy Authority of Ireland, including measures relating to solar PV, battery storage and boiler replacement. 

Joseph Kilroy, Policy and public affairs manager for Ireland at CIOB, said: “Budget 2027 demonstrates a welcome continued commitment to investment in Ireland’s housing and infrastructure. The scale of investment in transport, housing and energy infrastructure is essential if Ireland is to address the structural challenges created by population growth, housing demand and regional imbalance. 

“However, the challenge facing Ireland is one of delivery rather than simply funding. The Government has committed more than €275 billion through the National Development Plan, and the priority now must be ensuring that this investment is converted into homes, infrastructure and place making. 

“We welcome the investment in energy efficiency and home energy upgrades. However, the decision to reduce carbon tax on home heating fuels and freeze the rate for the lifetime of this Government raises questions about the consistency of fiscal policy with Ireland’s climate ambitions. Ireland needs a long-term approach which both protects households from energy costs and accelerates the transition away from fossil fuels. 

“We also remain concerned about the continued reliance on demand-side interventions in housing. Increasing the Help to Buy limit to €35,000 may provide additional support to individual buyers, but it does not address the underlying constraints affecting housing delivery. Policy should focus more strongly on land activation, infrastructure provision and the capacity of the development system to deliver housing at scale. 

“Overall, Budget 2027 provides a significant opportunity to translate Ireland’s strong fiscal position into long-term improvements to the built environment, particularly national infrastructure. The focus now must be on delivery, productivity and ensuring that investment produces sustainable, high-quality places for people to live and work.” 

Infrastructure 

From a construction sector perspective, CIOB welcomes the continued investment in Ireland’s built environment and critical infrastructure. 

The Government has allocated €4.2 billion through the National Development Plan for additional investment in transport projects including DART+, BusConnects and Cork Area Commuter Rail, as well as road projects such as the Galway Ring Road and the M28 Cork to Ringaskiddy. A further €6 billion is being allocated between 2027 and 2030 to progress MetroLink. 

This investment is particularly important given Ireland’s growing population and the need to support compact growth, regional connectivity and economic competitiveness as outlined in the National Planning Framework. 

CIOB has consistently highlighted the importance of ensuring that infrastructure investment is accompanied by sufficient capacity within the public bodies and delivery agencies responsible for planning, procurement and project delivery. 

The scale of the investment now committed means that improving delivery capacity must remain a priority. Funding alone will not deliver infrastructure: Ireland must continue to address planning, procurement, resourcing and coordination challenges that can delay major projects. 

Housing 

CIOB welcomes the Government’s continued investment in housing, including €3 billion for social housing and more than €1 billion to support the delivery of starter homes and affordability measures. The Government has indicated that €3 billion will support the delivery of 11,250 new-build social homes. 

However, CIOB remains concerned about the continued emphasis on demand-side measures. 

The Help to Buy scheme will be increased from a maximum tax refund of €30,000 to €35,000 for first-time buyers. 

CIOB does not support the expansion of Help to Buy as a long-term solution to Ireland’s housing supply and affordability challenges. Demand-side supports can increase purchasing power in a market where supply remains constrained, without addressing the underlying barriers to delivery. 

We have repeatedly called for greater focus on the early stages of the development process, particularly land acquisition and preparation, infrastructure provision and the activation of viable development sites. 

Sustainability 

Budget 2027 contains a significant allocation for residential energy upgrades, with more than €650 million being provided through the SEAI for measures including solar PV, battery grants and a boiler scrappage scheme. 

CIOB welcomes investment that can improve the energy performance of Ireland’s building stock and reduce household exposure to volatile fossil fuel prices. 

However, the Government’s decision to reduce carbon tax on home heating oil and natural gas to 2023 levels, and to maintain those rates for the lifetime of the Government, represents a significant change in the direction of energy taxation. 

CIOB believes that Ireland needs to ensure that short-term measures to address energy affordability do not undermine the long-term investment and behavioural changes required to meet national climate targets. 

The construction sector has a central role to play in delivering this transition, through retrofit, energy efficiency, renewable technologies, adaptive reuse and lower-carbon construction. 

The Institute also continues to call for reform of Ireland’s VAT treatment of buildings, particularly to incentivise renovation, retrofit and reuse over demolition and rebuild. 

Education, skills and research 

The construction sector continues to face significant capacity constraints as Ireland seeks to increase housing and infrastructure delivery. 

Budget 2027 includes €150 million from the National Training Fund over three years for reskilling and upskilling in response to the development of artificial intelligence. 

CIOB welcomes continued investment in skills and lifelong learning, but believes that the scale of Ireland’s housing and infrastructure ambitions requires sustained investment in construction apprenticeships, technical education and workforce development. 

The construction sector needs a strong pipeline of skilled workers capable of delivering increasingly complex projects, while also adapting to digitalisation, modern methods of construction and the transition to a lower-carbon built environment. 

Investment in skills must therefore be considered alongside the Government’s wider capital investment programme, ensuring that Ireland has the workforce and delivery capacity necessary to turn planned expenditure into completed projects.