House prices up 3.24% during 2020
Residential property prices rose by 3.24% during 2020, after falling 0.97% in 2019. During the latest quarter (Q4), Irish house prices rose 1.78% q-o-q.
Demand and supply falling
Residential dwelling purchases by households fell 21.1% during 2020 to 35,708 units, following 2% growth in 2019, according to Ireland’s Central Statistics Office. Similarly, sales values fell 20.7% y-o-y to €10.63 billion, in contrast to a 3.6% growth in 2019.
New dwelling completions fell by 1.9% to 20,676 units in 2020 from a year earlier, following a 17.7% growth in 2019, based on figures from the CSO.
Rents, rental yields: excellent yields at 7.18%
Dublin apartment costs are around €2,354 per sq. m.
|Ireland: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Dublin||€ 282,451||€ 1,690||7.18%|
Recent news: The Irish economy grew by 3% in 2020 from a year earlier – the only positive growth in the European Union (EU). This strong growth, despite global economic uncertainty, was mainly driven by companies nominally relocating in the country, such as Perrigo Co. and Jazz Pharmaceuticals Plc, who are attracted by the country’s very open economy and by its relatively low tax inversion rate of 12.5%. The economy grew by an annual average of 10% from 2014 to 2019.
The economy is projected to grow by 3.4% this year and by another 3.5% in 2022 on the back of strong private consumption, recovery in investment, as well as strong exports, according to the European Commission.