House prices essentially static
Residential property prices rose by a minuscule 0.36% nationwide during the year to Q3 2020, following y-o-y rises of 0.39% in Q2 2020 and 0.29% in Q1 2020, and a decline of -0.97% in Q4 2019. During the latest quarter, Irish house prices increased 1.14% q-o-q.
Demand and supply falling
In the first three quarters of 2020, purchases of residential dwellings fell by 29.5% to 22,645 units from a year earlier, following 1.8% growth in 2019, according to Ireland’s Central Statistics Office. The total sales value dropped 30.6% y-o-y to €6.59 billion over the same period.
New dwelling completions fell by 9.4% to 13,335 units in the first three quarters of 2020 from a year earlier, following a 17.8% 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 about 5.9% in 2019, after GDP growth of 9.3% in 2018, 9.4% in 2017, 1.7% in 2016, 25.4% in 2014 (obviously a statistical artefact), and 8.5% in 2014. The strong growth, despite uncertain economic outlook, 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 Irish economy is projected to contract by a modest 2.3% this year, according to the European Commission, after the coronavirus outbreak and related lockdown measures severely hit investment, private consumption and external trade.