MINISTER FOR HOUSING James Browne has defended a tax cut for property developers as part of Budget 2026 by saying that builders “cannot break even” on apartments.

The VAT rate applied to the sale of completed apartments will be reduced from 13.5% to 9%, effective from today until 31 December 2030.

Speaking on RTÉ’s Morning Ireland today, Browne defended the Government’s decision to include the VAT cut. 

When it was put to him that the measure will not affect the affordability of apartments, Browne claimed the move would result in “substantial movement” in the number of apartments being built because developers will be able to make a profit.

“Right now, they can’t even get close to breaking even,” he said. “This is a viability measure, not an affordability measure.”

He said 40,000 planning permissions have been granted in Dublin for apartments which have not been commenced, claiming that developers will make a “significant loss” if they do begin building.

“How you solve the housing crisis is by supply, supply, supply. That is the only way. We have a supply crisis in this country. If there was a big profit to be made in apartments, or even a tiny profit, people will be building them,” he said.

“[The cuts] are designed to get apartments built that are not otherwise being built. Apartments not built are of no benefit to anybody.”

When asked why the tax break will apply to apartments which are already built, Browne claimed it would be “common sense” to do so.

“If you say, for example, we’re not putting the VAT cut until January, when nobody’s going to sell an apartment in January,” he said.