The Government has confirmed a significant expansion of its housing investment strategy, announcing a new €400 million equity programme through the Ireland Strategic Investment Fund. The move brings total equity backing for homebuilding under the fund to €800 million since the initiative was launched in mid-2023.
ISIF, which is managed by the National Treasury Management Agency, operates as a commercial development fund with a remit to support economic activity and employment across Ireland. Alongside the State funding, the initiative will be complemented by a further €200 million in equity from domestic banks, increasing the overall scale of available capital.
According to the Minister for Finance, Simon Harris, the expanded programme builds on ISIF’s existing housing-related commitments, which already total €2.5 billion. These investments are aimed at supporting the delivery of more than 25,000 new homes by the end of the decade. He noted that the combined €600 million in new equity is expected to unlock up to €2 billion in overall financing, with capacity to support the construction of around 5,000 additional homes nationwide. The participation of the banking sector was highlighted as evidence that targeted State investment can attract private capital and strengthen long-term funding structures within the homebuilding sector.
The Minister for Housing, James Browne, said the initiative is designed to broaden access to funding, particularly for small and medium-sized housebuilders. He emphasised that increased equity availability can help these firms develop a more reliable pipeline of projects, supporting sustainable growth in housing output across the country. He also pointed to the wider objective of creating a more supportive operating environment for residential development through closer collaboration between public and private stakeholders.
From an investment perspective, Sarah Hickey, senior investment director for real assets at ISIF, stressed the importance of equity risk capital in enabling housing delivery. She noted that earlier ISIF commitments have already helped unlock development sites and improve project viability, contributing to the delivery of thousands of homes. The new funding is intended to extend that progress by supporting additional funding platforms and encouraging further co-investment from other capital providers.
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