The Irish Government yesterday published its Review of the National Development Plan (NDP), which outlines a record €275.4 billion infrastructure investment programme through to 2035. Central to this is the delivery of 300,000 new homes by 2030, underpinned by significant investment in enabling infrastructure, particularly water, energy and transport.

This note highlights the key housing-related measures contained in the revised NDP.

Direct housing investment and delivery targets

The revised NDP allocates €35.955 billion to the Department of Housing, Local Government and Heritage, the largest sectoral allocation under the plan. Of this, €28.275 billion is allocated to housing and €7.68 billion to water.

The plan states that the largest component of the capital allocation for housing will provide for:

  • the Programme for Government commitment to deliver 12,000 new-build social homes annually (2026–2030); and
  • a new Starter Homes Programme aiming for 15,000 units per year, supporting home ownership.

Infrastructure to unlock housing supply

Housing delivery is expressly linked in the plan to large-scale investment in supporting infrastructure, as follows:

  • Water: €7.68 billion via the NDP and a further €4.5 billion in Government equity funding for Uisce Éireann, broken down between:
    • €2 billion in 2025 to facilitate additional capacity for housing development and compliance with EU water standards; and
    • €2.5 billion earmarked for 2026 to 2030, specifically to support large-scale water infrastructure projects.
  • Energy: €3.5 billion in equity funding to ESB and EirGrid to expand electricity transmission and distribution network infrastructure.
  • Transport: €22.33 billion, including provision for Metrolink and active travel.

Each of these investments are intended to deal with infrastructure deficits which are currently perceived to be causing bottlenecks to residential delivery. These allocations will enable forward planning, zoning, and investment decision-making for development land.

Key Legal and Regulatory Developments

Planning reform: Planning and Development Act 2024

The revised NDP calls out the importance of the broader reforms to the planning system which are underway, and in particular the Planning and Development Act 2024, referencing key reforms such as:

  • Clearer pathways and timeframes for planning consents;
  • Reform of judicial review processes;
  • Extended ten-year development plan cycles with mid-term reviews; and
  • Mandatory alignment with National Planning Statements, replacing ministerial guidelines and aimed at ensuring consistency across planning decisions.

The stated intention of these reforms is to “enhance to enhance delivery certainty, reduce legal and procedural delays, and ensure that infrastructure projects can proceed in a timely and coordinated manner”.

Design standardisation and Modern Methods of Construction

In July, the Department of Housing, Local Government and Heritage published new guidelines mandating the use of standardised design layouts and specifications for all new-build social housing projects development by local authorities and approved housing bodies. These guidelines are expected to become operational in Q3 of 2025.

These guidelines are intended to support the simultaneous drive toward the adoption of Modern Methods of Construction, which the Government believes to be needed in order to mitigate the labour supply pressures experienced in the provision of housing.

The guidelines referenced above are separate and in addition to the Design Standards for New Apartments, also published this month, which have a broader application and also demonstrate the overall aim of aim balancing regulatory standards with increased housing output.

In conclusion

The 2025 NDP Review confirms the centrality of housing in national infrastructure planning and funding. However, it contains little detail on specific measures to be taken by the State in spending the various sums allocated. The Minister for Public Expenditure and Reform yesterday indicated that Minsters would “work on the specific sectoral plans and investment plans over the next five years”, and we will therefore have to wait for further meaningful detail on the potential opportunities presented for those operating within the housing market.

For further information, please contact Aoife Smyth, Knowledge Consultant, or your usual ALG Real Estate contact.