The Irish housing market has been a subject of keen interest and speculation for buyers and investors alike. A recent report published by Daft.ie for the last quarter of 2023 provides vital insights that could guide potential homebuyers and investors in their decision-making process. Here’s a rundown of the crucial points.
House prices in Ireland rose by just 3.4% in 2024
Average house prices in Ireland increase, ever-so-slightly
According to the report, Irish house prices during 2023 rose by an average of 3.4%, the smallest increase seen since 2019. The average listing price nationwide in the final quarter of 2023 was €320,046, 1.5% lower than it was in quarter 3. Notably, this represents a significant jump from the average price of €186,000 seen in the post-crisis low in 2013.
There remain regional differences in prices. The capital city of Dublin recorded an average house price of €456,000, while outside of Dublin, the average price was less, at €347,000. Cork city saw prices rise by 3.7%. Galway City saw an increase of 4.1%, while prices in Limerick and Waterford grew 9% and 6.1% respectively, representing an increase in popularity.
Outside the big cities, prices were 6.8% higher in Muster and 8.3% higher in Connacht-Ulster in the final quarter of 2023, compared to the same period a year prior.
The rest of the country saw a 4.3% increase, taking the average listing price to €271,117.
It’s worth noting that a fall in prices in the final three months of the year is the norm.
Ronan Lyons, associate professor in economics at Trinity College Dublin, said ‘After an extraordinary couple of years, marked by a pandemic, war, inflation and interest rates increases – inflation in housing prices is settling back to the level it had become used to.’
Below, we outline the key points from the report, which provide insight into the Irish property market in quarter one of 2024.
An example rental property in Ireland, split into apartments
Rent in Ireland continues to rise
The rental sector also witnessed steep increases, with rents rising by 4.5% year-on-year. This increase can be attributed to the continued supply-demand imbalance in the rental market.
Housing supply constraints
Despite the increase in prices, the report suggests that the supply of housing remains strained, with just 17,500 homes listed for sale in December 2023. This figure is significantly lower than the 25,000 homes listed in the same period the previous year, representing a 30% decrease.
Price increases by property type
The report also breaks down price increases by property type. One-bedroom apartments saw the highest price increase at 7%, followed by two-bedroom terraced houses at 6.5%, and three-bedroom semi-detached houses at 6%.
What’s next for the Irish property market?
Future outlook for house prices in Ireland
Despite the current challenges, the future of the Irish housing market seems promising. Daft.ie predicts that if the economic recovery continues and the housing supply improves, we could see a more balanced market in the coming years.
Overall, the report paints a picture of a housing market that continues to grapple with supply constraints while experiencing price increases. Nevertheless, the market presents opportunities for both homeowners and investors, given the positive outlook for economic recovery and potential improvements in housing supply.
This information, as presented in the Daft.ie report provides a valuable resource for anyone considering buying property in Ireland. The current market dynamics necessitate thorough research and careful planning for prospective buyers and investors to make informed decisions.
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Source: Daft.ie
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