Real Estate Prices in Ireland Set to Rise by 4.5%

Estate agents predict a 4.5% increase in real estate prices in Ireland over the next year, driven by a significant lack of housing stock.

In a rather intriguing turn of events, estate agents in the Republic of Ireland are forecasting a property price surge of approximately 4.5% over the next year. This anticipated increase is primarily attributed to a rather alarming shortage of available properties. A staggering three out of four agents have reported low stock levels, with nearly half attributing the escalating prices directly to this lack of supply. This situation persists even as a significant 80% of agents characterize current property prices as either expensive or very expensive.

The insights stem from the SCSI Residential Property Mid-Year Market Monitor 2024, which reveals a notable shift in sentiment. Just a year ago, only 35% of agents pinpointed the scarcity of supply as the principal factor influencing price fluctuations; today, that figure has risen to 46%.

Other elements contributing to the price hike include the overall state of the economy, fluctuating interest rates, and the accessibility of credit. Additionally, government schemes aimed at facilitating house purchases, such as Help to Buy, along with variations in immigration and emigration rates, are also playing a role in this complex equation.

As it stands, the average price for a three-bedroom semi-detached house varies significantly across the country: €418,750 in Meath, €487,821 in Kildare, €502,173 in Wicklow, €429,667 in Cork, and €424,375 in Galway. Interestingly, there has been an uptick in the number of buy-to-let properties entering the market over the past six months, although the rate of this increase has notably slowed since the fourth quarter of 2023.

For those considering renting, the rental prices for three-bedroom homes range from €2,139 in Meath to €2,475 in Wicklow. When factoring in reasonable living expenses of €3,504 for a family of four, the total estimated monthly expenses for a family renting in Meath would amount to €5,643, while in Wicklow, it would be slightly higher at €5,979.

For families renting a two-bedroom terraced house in Galway and Wicklow, the figures reflect a staggering 33% and 37% of their income, respectively. It is widely acknowledged that spending more than 30% of one’s income on rent is considered an undue burden, rendering the act of renting increasingly unaffordable.