According to a report by the Society of Chartered Surveyors in Ireland, less than half of the cost of building a two-bed apartment in the Greater Dublin area goes towards construction.
The report said that VAT, levies and site costs make up the balance of the cost.
The association said €293,000 is what it now costs to build a two-bedroom, low-rise apartment in the Greater Dublin area.
It said it costs around €500,000 to deliver a medium-rise apartment in the capital.
Construction costs make up 43% of the total price, while VAT, levies and fees make up 41%.
The report found that the delivery of affordable medium-rise apartments in Dublin was not commercially viable.
The association said that to address the high prices, there needed to be flexibility in design and improved rates with access to financing.
A spokesperson for the Society of Chartered Surveyors said we need to increase the supply of serviced land and build different models of apartments in order to bring down the construction costs of apartments.