Cushman & Wakefield have predicted that prime commercial property will rise by 4% in Dublin this year. Price are expected to reach €646 per sqm. vs €619 per sqm. achieved at the end of 2016 (where rents rose 4.6%). 260,000 sqm. worth of office accommodation was taken up in Dublin in 2016. This is already 45% ahead of the 10 year average. There is 373,000 sqm. worth of office accommodation currently under construction in Dublin.
Growth in the construction sector slowed down in December according to the purchasing managers index from 59.8 in November to 58.9. The decrease was attributed to a drop in civil engineering. The report also revealed that input cost inflation had risen at its fastest in almost 10 years in December due to higher prices in raw materials and manufactured goods.
A new product is set to be launched from ICS Mortgages/ Dilosk that will provide funding to property investors looking to buy into the market. There is an interest-only option for 10 years, along with variable rates which start at 4.49% on LTV of <50%, and 5.25% on LTV >50%. The product is also available for those looking to refinance their existing investments, and those who want to buy their first buy-to-let property. The minimum value of the property is set at €80,000.
The average first-time buyer is now being approved for a mortgage of €201,928 in December which is an increase from October’s €192,928. This is the first time since 2009 that the mortgage approval has reached this level. The average loan for those moving home or trading up, has reached €248,486 which is 4.4% increase for the year. There remains a severe shortage of property to purchase, with only 1% of housing stock for sale. For 2016, there were 34,230 applicants who were given the go ahead to borrow. 2016 saw a total of 29,498 mortgages to the value of €5.66 billion being issued.
Dublin City Council revealed plans to create a new town at Poolbeg which will see 3,000 homes built in large blocks which can rise to 50m high. Commercial space for 8,000 workers will also form part of the new town consisting of 100,000 sq.m. The scheme is on the old Irish Glass Bottle site comprising of 10 hectares. This was bought in 2006 for €400m. Other lands will include some owned by the Dublin Port company and overall will comprise of 34 hectares.
House buyers who restore properties in small towns and villages in rural areas will be entitled to a renovation grant from the Government. It is part of the Governments Action Plan for Rural Development to revive rural Ireland. House prices in small towns and villages are usually significantly lower than those in major cities.
The property price inflation for 2016 has risen to 8.6%. Prices in Dublin rose an average of 5.9% on an annual basis. Overall in the year to November, national house prices excluding Dublin rose by 12.8%. The west of Ireland was strongest with 16.7% growth for the same period. The national index remains at 31.5% lower than the peak of 2007. Dublin prices are still 32.2% lower than the peak of February 2007.
Figures prepared by Geo Directory show that one in every four houses in Leitrim is unoccupied. Many of these are holiday homes or vacant properties. Leitrim has the 4th largest amount of holiday homes in Ireland.