Ireland » Market Report

Rising property values in Ireland and prosperity acquired from property trading has been a strong factor influencing Irish people to invest in overseas property. The raise in property prices has also resulted in high prices being paid for development land. Irish property valuations are highest in Dublin, the highest salary rates in the Irish economy and heavy US private sector direct investment. The Irish state budget for the fiscal year 2007 contains a number of initiatives and incentives to improve energy efficiency in other areas and reduce the overall cost of this measure in the future.

Irish property and house prices declined by 1.1% in November, this compares to a decline of 1.3% in October. Measured over the past twelve months (November 2006 to November 2007) the average prices declined by 5.9% in that period. Since the start of this year, that decline has been 6.0%. The average price paid for a house in Ireland in November now stands at €292,124, compared with €310,409 in November last year. The house price index measures the movement of house prices on a month-by-month basis.

Construction employment has dropped according to Live Register statistics for May 2007. Since 2000, the Department of Environment, Heritage and Local Government have built approximately 75,000 housing units every year as detailed. Currently (2005) there is enough zoned land to accommodate 460,000 new homes, though as housing density figures continue to rise each year existing land has the potential to provide an even greater number of housing units.

Southern Ireland has been very optimistic for the past 7 years with demand often outstripping supply, thus driving sale prices up.  At the upper end of the market demand has slipped back over the past three years, at this level there is generally good choice and often the purchase price can be negotiated down from the guide price.  Demand for building sites with outline planning permission are still in great demand, though buyers are advised to seek professional guidance here!

International Property Brokers forecast that the rates of property in Ireland would increase from 30 to 50% by 2010, with private sector demand continuing to dominate the market.