Confidence has returned to the Irish construction sector, which is once again attracting significant levels of private investment.

That is according to new figures from the building information index, which show that €6.1bn was spent on construction here last year.

That is an increase of €3bn on the figure for 2014.

The Managing Director of the index Danny O'Shea has said we started to build just over 8,000 homes in Dublin last year.

However he has said it is still not enough to meet demand in the capital: “Interesting to see that a larger number of residential units have commenced.

“It will take a while for them to come on stream, even if they do come on stream they are not going to fulfil what the USI say we need.

“There are probably a couple of reasons, are the prices there for the builders to make a profit on these yet?

“Are the prices too high for people to get mortgages for them?

“Are the builders in a position to get financing yet?

“So there is certainly a circle that has to be squared there.”