Experts are predicting Irish house prices will jump by an average of 4.5% over the next year, and it’s all down to a desperate lack of properties for sale.
This news comes despite80% of estate agents admitting that current prices are already “expensive” or “very expensive”. So, what’s behind this predicted surge?
The Society of Chartered Surveyors Ireland (SCSI), the leading professional body for property experts, says it’s all about supply and demand – or rather, the lack of supply. Their latest research reveals that a massive three-quarters of estate agents are struggling with low stock levels, making it a seller’s market.
Gerard O’Toole, a top figure at the SCSI, warns: “Our members are seeing the impact of this lack of supply first-hand. Until we see a significant increase in the number of new homes being built, this shortage will continue to drive up prices.”
This shortage is being blamed on several factors, including:
- The economy: A strong economy often leads to increased demand for housing.
- Interest rates: Lower interest rates make mortgages more affordable, potentially increasing demand.
- Government schemes: Initiatives like the “Help to Buy” scheme can impact demand.
- Immigration and emigration: Changes in the number of people moving in and out of Ireland affect housing needs.
How much can you expect to pay?
Here’s a snapshot of the current average prices for a 3-bed semi-detached house in some popular areas:
- Meath: €418,750
- Kildare: €487,821
- Wicklow: €502,173
- Cork: €429,667
- Galway: €424,375
What about renters?
While rising prices might sound good for sellers, renters face their own challenges. The SCSI research also highlights the increasing cost of renting in Ireland.
For example, the average rent for a 3-bed semi ranges from €2,139 in Meath to a hefty €2,475 in Wicklow. Add in reasonable living expenses of around €3,504 for a family of four, and you’re looking at total monthly outgoings of €5,643 in Meath and a staggering €5,979 in Wicklow – just to keep a roof over your head.
O’Toole points out that spending more than 30% of your income on rent is considered a real financial burden. He adds: “These figures highlight how tough it is for families to rent in Ireland.”
The SCSI says it will continue to track these figures and work with decision-makers to address the challenges in the housing market.