House prices up 8.44% during 2021
Nationwide residential property prices rose by 8.44% in 2021, a sharp increase from a y-o-y increase of 3.24% in 2020. During the latest quarter, Irish house prices rose 1.89% q-o-q.
Demand rising strongly, residential construction remains weak
In 2021, the total number of market-based household purchases of residential dwellings rose strongly by 16.7% to 44,221 units from a year earlier, in contrast to a 16.3% fall during 2020, according to Ireland’s Central Statistics Office (CSO). Similarly, sales value surged by about 27.9% y-o-y to €14.5 billion in 2021, after falling by 15.6% last year.
New dwelling completions fell slightly by 0.5% to 20,433 units in 2021 from the previous year, following a 2.5% decline in 2020, 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: Ireland’s economic growth accelerated to 15.5% y-o-y in 2021, buoyed by the exceptional performance of multinational sectors, particularly information/communications technology firms, pharmaceutical, and med-tech manufacturing companies, which are attracted by the country’s very open economy and by its relatively low tax inversion rate of 12.5%. In 2020, economic growth slowed to 5.9% - but still the only positive growth in the European Union (EU). The economy grew by an annual average of 10% from 2014 to 2019.
The Irish economy is projected to grow by 5.5% this year and by another 4.5% in 2023, according to the European Commission.