The cost of delivering new homes in Dublin ranges from between €330,00 to €460,000, according to a new benchmark report.

The Irish Institutional Property (IIP), a lobby group for institutional investors, says construction costs alone for a two-bedroom house in Dublin city or suburbs are €158,000.

But this rises to a final cost of €330,000 when planning, finance and VAT are added.

The report was conducted by construction consultancy company Linesight.

It found that for apartments, construction costs are higher at €225,000 per unit.

This is due to more requirements around foundations, parking, provision of lifts etc.

Source: Irish Institutional Property

This figure rises to over €300,000 when legal, planning and finance costs are included.

The addition of VAT, levies and equity sees the final cost rise to over €460,000.

Pat Farrell is CEO of Irish Institutional Property.

"We hope that the data will help drive an informed debate on the issue and mitigate against some misunderstandings about the realities of home building here.

"Some recent commentary, and some proposals on how best to drive the delivery of a greater number of homes, are based on an improper understanding of these realities.

"Indeed, some proposals in the public domain would result in a reduction in the number of new homes delivered, which is something nobody would welcome".

There are also some regional variations, such as levies that are charged.

While for city centre or complex builds, the cost may be up to 20-40% higher depending on site conditions,
height and specification.

The report also found that the cost to deliver housing in other regions - such as  Cork, Limerick and Galway - do not vary significantly.