Funding gap stalls Dublin City University's 1,235-bed housing plan

Dublin City University has planning permission until March 2029 for accommodation with 1,235 beds, but construction cannot proceed because of a financial viability gap, an Oireachtas committee heard. The permission therefore remains in place while the project is stalled.

The university faced questions on Wednesday about writing off €4.38 million, including VAT, spent on professional fees for the proposed project. The expenditure was recorded in its financial statement for 2024/2025.

DCU chief operations officer Dr Declan Raftery said the university began the project in 2017 to add 1,235 student beds at its Glasnevin campus. It had been due to go to tender in September 2020, before the Covid-19 pandemic disrupted the plans.

The original 1,235-bed project was subsequently reduced to a first phase of 405 beds. Two procurement competitions were completed in an effort to obtain the best value for money.

The viability problem is the unresolved balance between construction costs, government capital grants and rental levels considered reasonably affordable for students. Those elements have not been brought into a financially workable arrangement.

Asked whether the written-off €4.38 million could be salvaged to deliver the accommodation, Raftery said a large portion could be.