Ireland property prices have been going up and up this year, nearly 10% up until March from the 12 month period before. The prices in the real estate industry increased by exactly 9.6%, according to the property price index from the Central Statistics Office. This is a massive increase and indicates positive changes in the Irish property market, which don’t look like will be changing anytime soon.
Prices for homes in the south-east, excluding South Tipperary, saw the biggest increase in the year to March, perhaps due to increased demand for properties in the area. They increased by 15.5%. The prices of houses in the West followed, having gone up by 15.3%. In Dublin the prices of residential property increased by 8.2%, house prices by 8% in Dublin and apartments went up by 9.6%. The biggest house price growth was in the city of Dublin, at 10.7%. The lowest price growth of houses was in Fingal, at 2.2%. Ireland property prices have been fluctuating, but as a whole, they have been on the rise.
It is clear that Dublin has overpowered the price increase and this comes as no surprise. It is an increasingly popular tourist destination and investors from all over the world continue to place their money in the Irish property market. Ireland property prices look attractive, as investors could sell their investments and make huge returns. The same applies to the Irish renting market – so many people are renting in Ireland now as it offers a convenient and flexible living. It suits a lot of young workers who are thriving and living their life spontaneously, who do not want to tie themselves down to any one property. Again, this is another bonus for investors who put their money into Irish property.
However, it may not all be a success for the Irish property market. A spokesperson from Goodbody Stockbrokers said: “With significant levels of mortgage approvals outstanding, heightened demand is likely to keep price inflation at a high level for the foreseeable future.
“In relation to new homes, the level of transactions remains exceptionally low, with just 1,445 units sold. The issue here is supply rather than demand.”
This shows that despite not a lot of properties actually selling because of the high prices, supply is still very ongoing. Overall, the national index is 31.5% lower than its peak at the height of the boom in 2007. From the low point in early 2013, however, the prices overall have gone up by 50.4%.
A lot of forecasts highlight that this situation is likely to not change anytime soon. Ireland property prices, particularly in the capital and in the outskirts, will probably remain elevated, it’s just important that people remain aware of financial risks and property endeavours to a professional and reassuring level.
Written by Gemma Smith