House prices up 7.93% during the year to Q1 2022
Nationwide residential property prices rose strongly by 7.93% in Q1 2022 from a year earlier, a sharp improvement from a modest y-o-y increase of 3.5% in the same period last year. Yet during the latest quarter, Irish house prices fell slightly by 0.25% q-o-q.
Demand mixed, residential construction activity increasing
New dwelling completions surged 44.5% to 5,669 units in Q1 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.
In Q1 2022, the total number of purchases of residential dwellings fell by 7.9% y-o-y to 8,974 units, while sales values increased 1.2% to €3.06 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.
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 5.4% this year and by another 4.4% in 2023, according to the European Commission.