There has been an increase of 45% on the number of new build homes in Dublin so far this year with 3,400 houses and apartments constructed. There is a demand for 10,000 new homes in Dublin currently. Nationally, there has been an increase of 17% of new build homes vs 2015. The Greater Dublin Area (Wicklow, Meath & Kildare) accounted for 40% of the new builds.
The ERSI report for December predicts house prices will rise 7% during the next 2 years and 5% yearly after that, medium term. They also predict that 30,000 new homes will be required annually by 2024 and that a further €50bn of mortgage lending will be needed by that year also.
Residential property construction rose by 30% for 2016 when compared with 2015. Construction slowed in November but overall, the growth is quite significant.
The European Investment Bank (EIB) has indicated that it will loan circa €200m to Ireland to help build social and affordable housing. The loan would be off the balance sheets of the Government and therefore would not be breaching any fiscal rules set by Europe. The EIB has previously invested in the Luas and T2 at Dublin Airport.
Residential properties near public transport such as the DART and the LUAS are at a premium in Dublin and are among the dearest in Ireland. Sandymount, on the DART line, has houses averaging €788k with those living near the LUAS in Rathgar paying an average of €679k. When it comes to North Dublin, Howth is the most expensive area – and it is on the DART line, with average asking prices of €566k.
The value of mortgage approvals for October were up 29% when compared to the same period in 2015, with September showing a 40% increase and August a massive 55% increase. Overall, the 3 months from August – October showed an average of 41% growth in the value of mortgages YoY. First time buyers are still accounting for the largest number of approvals.
2016 saw the average value of residential properties in Ireland grow by 5.2%. In 2015 it was 4.0%. When Dublin is excluded, the average value of residential properties grew by 7.3% in 2016 vs 7.6% in 2015.
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