The average price of homes sold by Cairn Homes has risen by €6,000 to €393,000, lower than inflation in the wider market, with the developer flagging higher build costs are expected this year.
Last year, the homebuilder’s average sale price fell marginally to €387,000 exclusive of VAT in the first half of the year.
New interim results published by the company have shown its average selling price rose 1.6 per cent to €393,000 during the six-month period that ended in June of this year.
The rate of increase was lower than the 5.6 per cent increase recorded by the Central Statistics Office in its latest price tracker.
In the financial update, Cairn Homes has forecast build cost inflation will be higher in 2026. Last year, it forecast inflation would run between 1 per cent and 1.5 per cent. The company said build cost inflation is expected to be circa 2.5 per cent this year.
“Despite an inflationary environment, our average selling price (€393,000 excl. VAT) has increased by only 1.6 per cent compared to the same period last year,” Cairn Homes chief executive Michael Stanley said.
“This is a clear endorsement of our scaled and efficient platform. Cairn’s growing brand affinity continues to be built upon industry leading output, quality and affordability.”
Based on the company’s latest filing, it now has a record forward order book of 5,020 new homes, valued at €1.89 billion and being built across 30 sites.
Compared to the first six months of 2025, Cairn Homes’ work-in-progress has risen by €69.1 million to €482.9 million. Revenue also rose in the first half of the year by 60 per cent to €455.5 million following the sale of 1,139 units.
The company recorded a gross profit of €96.9 million, up 54 per cent year on year compared to €63.1 million in the first half of 2025, and operating margin grew from 15 per cent to 16.4 per cent.
Cairn Homes has updated its revenue forecast this year, with the firm expecting turnover of €1.08 billion. It previously said revenue would range between €1.05 billion to €1.08 billion.
It added operating profit of circa €185 million is expected this year and its guidance on return on equity was upgraded from 16.5 per cent to.17 per cent.
Stanley said the confidence the firm has in its result has led it to announces a new €50 million share buyback programme scheme and increase its interim dividend by 10 per cent to 4.5 cent per share.
Further details in the interim results showed the company’s net debt has fallen from €307.4 million to €194.5 million year on year, while it recorded “significantly stronger” cash flow, improving by €141 million year on year to an inflow of €22.4 million.