“Viability” euphemism for “super-profitability” as builder tax breaks cost workers over half billion Euro

Trade union Unite, which represents construction workers throughout Ireland, today (Friday) said that the goodie-bag of VAT cuts and corporation tax sweeteners for big builders unveiled in Tuesday’s Budget will see profits-per-apartment top €70,000.

Last year, the Total Development Costs report published by the Department of Housing, Local Government and Heritage estimated the profit on a completed urban two-bed apartment at over €48,000. The Budget VAT cut alone would swell that profit by nearly €20,000. Other corporation tax measures will further boost builders’ bottom lines.

The CEO of Cairn Homes has stated that the Budget measures, coupled with the reduction in minimum apartment standards announced in the summer, will probably be worth between €70,000 and €80,000 per apartment. 

While not all developments will attract all the Budget tax breaks, even the most conservative estimate will see profit-per-apartment top €70,000.

Unite’s Irish secretary Susan Fitzgerald said:

“The sole focus of developers is on growing their bottom line.  It’s apparent that, ahead of the Budget, business lobbyists told the government that the private sector will only deliver housing if it further swells builders’ profits and satisfies their shareholders. 

“The buzzword of Budget 2026 has been ‘viability’, but this is clearly just a euphemism for ‘super-profitability’. 

“Those profits are being subsidised by workers who will see their living standards stagnate because there was no money left to index tax bands. Meanwhile, people in housing need will continue being locked out of truly affordable homes”.

Together, the reduction of VAT on new apartments coupled with the corporation tax exemption for cost rental income, the enhanced corporation tax deduction for apartment construction costs and the residential development stamp duty refund scheme will cost €563 million in a full year.

Unite regional officer James McCabe said:

“Rather than ploughing over half a billion Euros into tax breaks for developers, the money should have been used together with some of the windfall Apple tax money to develop a public construction company mandated to build truly affordable homes on public land”.