The Irish real estate market had a good year last year with record investment from across the UK and Europe, the US, Australia, and Asia. Property prices rose through the year and home valuations shot up through the roof. So homeowners were definitely happy. What does this year have in prospect for the Irish property market? Should you sell your house in Ireland quickly this year?
Here are the major predictions made by experts for the Irish property market for this year. Let’s get started.
Prediction #1: Home prices will shoot up.
Yes, that’s the most important prediction we have for Ireland. Home prices were already high last year and they are likely to go up further. The government has done its bit by relaxing the mortgage rules and giving impetus to first time buyers with grants and other policies aimed at encouraging investment. We expect home prices to rise by 10% to 15% in the lower end of the housing market, especially in the Dublin area.
Prediction #2: The government will attempt to solve the housing crisis.
Well, at least that’s the expectation. The government will be focused on addressing the housing crisis in the country, where home and apartment prices are much beyond the buying capacity of a vast majority of the population, especially in Dublin. For one, the government would try to bring down rent by imposing rent controls. They would use the land under their control to increase the housing stock in the country.
Prediction #3: The government will try to decrease vacancy rates by increasing property taxes.
There’s a big problem in Ireland – there are hundreds of thousands of homes that are lying unoccupied, for want of buyers. The government is expected to step in and compel homeowners to sell their vacant homes by increasing property taxes.
This could force a number of homeowners to sell their vacant properties at slightly below market rates. Of course, any increase in property rates will be vigorously opposed by most people in the country, but it’s something that just needs to be done to bring sense in the housing market.
Prediction #4: There’s going to be an even higher demand for commercial properties.
We expect the commercial real estate market to be a real winner this year in Ireland. Construction activities have almost been completed over half a million square meters in Dublin, and there are going to be a lot of takers for the newly built commercial properties that are going to come up here.
We expect a number of new apartment complexes to come into the market this year, adding up to 30,000 new apartments for sale. This is certainly good news for those who’re looking to buy apartments in Ireland.
Prediction #5: There are going to be new innovations in the housing market.
One of the reasons for property prices in Ireland be so high is the high cost of construction in the country. There are going to be new innovations in construction that are going to bring down home costs. New technologies are going to be used and the government will reduce the import duties on many raw materials.