The Government welcomes the publication of the National Economic and Social Council’s (NESC) report, Deepening Compact Growth in Ireland, which sets out clear evidence of the multiple benefits of compact urban development.
Compact growth refers to encouraging more development within the existing footprints of cities, towns, and villages—through the creation of walkable neighbourhoods and the renovation of vacant and derelict properties—rather than expanding into surrounding greenfield land.
The report highlights that compact growth delivers wide-ranging benefits, including:
Reduced car dependency and increased use of sustainable transport
Improved productivity and innovation
Better access to services
Lower costs for public infrastructure and services
While the Government is on track to meet its National Planning Framework target of ensuring 40% of new housing is built within existing urban areas, the fastest-growing developments are still often located on the outskirts of towns and villages.
One key challenge to compact growth is that greenfield development remains more financially attractive to developers than brownfield alternatives. Building houses on undeveloped land is generally cheaper than constructing more compact housing such as apartments. However, when the full societal costs are considered—including higher infrastructure spending, increased travel distances, and higher carbon emissions—brownfield development proves to be the more cost-effective and sustainable option.
In response, NESC makes several important recommendations:
Increase public investment to unlock land suitable for compact growth, especially through major urban regeneration projects and upgrades to critical infrastructure like water services.
Review development incentives to provide greater support for brownfield and infill development.
Implement recommendations from the Residential Construction Cost Study Report (2023) and pursue the six actions on Modern Methods of Construction (MMC) identified by NESC in 2024 to reduce the cost of building apartments.
The Government recognises that many current and planned policies support compact growth. These include:
Renovation grants for vacant and derelict buildings
The Croí Cónaithe (Cities) scheme, which supports apartment development in urban centres
Programme for Government commitments, such as creating a strategic fund to invest in infrastructure, assemble sites, and de-risk land in urban areas to maximise development potential
The proposal to allow for small homes in existing gardens, which could also support this objective
Compact growth is a core pillar of the National Planning Framework (NPF), Ireland’s long-term spatial strategy up to 2040. The Government reaffirms its full commitment to advancing compact, sustainable, and community-focused development.
Read NESC’s report, Deepening Compact Growth in Ireland
