Despite regional declines, the Irish housing market boomed in 2022. Interest rates rose and recession threatened the property industry. Although being one of the strongest property markets in the EU, Q4 2022 saw the market decline marginally as home prices ease throughout Ireland. It’s unclear whether these decreases are seasonal or foreshadow 2023.
The Irish property market has chances and difficulties this year. We will discuss if 2023 is a good time to invest in Irish property or whether investors should wait till the market stabilises and any market developments investors and purchasers should be aware of.
Ireland’s property market in 2023?
Despite worries about the cost of living issue and raw material price rises hurting property developers, the Irish property market held up well in 2022. Ireland’s property prices grew 6% and Dublin’s 3.6% in Q4 MyHome.ie.
Irish property prices average €330,000. The typical Dublin home costs €436,000.
Ireland’s housing supply is still short, even if it’s recovering. 15,200 homes were offered nationwide on December 1, 2022. This was a year-over-year improvement. Despite cost of living issues, housing prices have risen due to low supply levels.
NEW HOME DEMAND
New-home sales could rise in 2023. The First Home plan and prolonged help-to-buy plan through 2024 are responsible for this. Demand is high since both schemes are only available on new builds. In the third quarter of 2022, 41% fewer homes received planning authorization than a year earlier.
Due to growing raw material and construction prices, home supply may reduce midway through 2023.
New construction projects are rising, but the amount of houses available to fulfil demand is still behind. Experts expect 5000–25,000 fewer new-build houses than required. New buildings are growing, which will boost supply across all sectors. This house supply stall will irritate many and raise costs.
SECOND-HAND AND DERELICT HOMES WILL INCREASE
Irish property investors and landlords will continue to leave. The new unoccupied house tax law will make many second-hand rental homes accessible.
This new law is expected to encourage owners to sell or rent vacant properties to ease the housing crisis.
WILL 2023 IRISH HOUSE PRICES FALL?
In the early months of 2023, home prices in Ireland are unlikely to fall due to strong demand and little supply. The market will likely stabilise with a minor nationwide home price gain. As demand decreases and supply recovers, property prices are unlikely to rise at the same pace as in the last three years.
As the Central Bank allows first-time purchasers to borrow up to four times their income, the Irish housing market is likely to boom in early 2023. This may boost owner-occupier and first-time buyer competition. Property prices may fall somewhat in 2023, but nothing is guaranteed.
Should I sell my house in Ireland now or in 2024?
Most property experts say now is a great time to sell. 2023 is a great year to sell, even if the market is cooling and prices are down. Why? Demand and supply remain the main causes.
Rising rates are another incentive to sell in 2023. The Bank of Ireland raised fixed mortgage rates by 0.25% in Q4 2022 to battle inflation after the federal reserve raised rates. Mortgage purchasers leave the market when interest rates rise. Motivated sellers should market their home before rates rise and the buyer pool shrinks.
In Q3 2022, experts reported a 7.8% rise in yearly asking prices. Property listings rose 46% from January 2022.
Should you buy an Irish property now?
Many purchasers should acquire an Irish house in 2023. New laws let first-time buyers borrow four times their salary. The previous limit was 3.5 × the buyer’s salary. Despite growing housing prices in Ireland, more first-time buyers will be able to buy residences that were previously unaffordable based on their income.
Slowing home prices and rising rental demand nationwide might benefit property investors.
Is Irish property a good investment?
Renters in cities and bigger towns are in high demand for buy-to-let homes. Ireland was the only EU nation to attain 3% economic growth in the 2021 census after the COVID-19 pandemic. Many Irish buy-to-let investors earn double-digit rates in desirable regions. Long-term investors also profit from rising property values. This essay explains why buy-to-let investment is still worthwhile.
Irish property will be interesting this year. New regulations may cause owner-occupiers and investors to join or leave Ireland’s property market, notwithstanding supply constraints. If you’re interested in real estate investing in Ireland, 2023 may be an excellent moment to launch a buy-to-let company.
