House prices up 4.6% during the year to Q2 2022

Nationwide residential property prices rose by 4.6% in Q2 2022 from a year earlier, after increasing by 7.79% in Q1 2022, 8.24% in Q4 2021, 8.33% in Q3 2021 and 5.21% in Q2 2021. Yet during the latest quarter, Irish house prices fell slightly by 0.85% q-o-q. 

 

Demand remains strong, residential construction activity surging

In the first half of 2022, the total number of market-based household purchases of residential dwellings rose by a modest 2.6% y-o-y to 20,179 units, and sales value increased 12.4% to €6.93 billion over the same period, according to Ireland’s Central Statistics Office (CSO). During 2021, both the number and value of sales transactions rose strongly by 16.7% and 27.9%, respectively.

New dwelling completions surged 48.7% to 13,316 units in the first half of 2022 from a year earlier, following y-o-y declines of 0.2% in 2021 and 2.5% 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 13.5% 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 5.3% this year and by another 4% in 2023, according to the European Commission.