Buyers saying no to ‘fixer uppers’ due to rising renovation costs, lack of available builders and steep increases in energy costs.
Dublin estate agents expect property values to rise by an average of 2.5% this year, according to the 2023 Sunday Times Dublin Property Price Guide.
This figure represents a return to 2021 levels of growth, also 2.5%, when compared with the 5.8% price rise expressed by estate agents for 2022.
“First time buyers in particular are bearing the brunt and will have bidding wars and scarce supply to reckon with”
The Sunday Times Property Price Guide, now celebrating its 20th anniversary, is the authoritative guide to the Dublin property market featuring a detailed analysis of Dublin property prices. It also includes interviews with a number of Dublin estate agents who outline their predictions for the coming year.
Predicting the property market
Commuter areas like Dublin 16, Dublin 3 and North Dublin are forecasted to experience the most growth at 5%, while a large swathe of postcodes are expected to remain static.
“Predicting the property market is never an exact science but speaking to estate agents at the coalface, market sentiment is fragile with a number of factors that will impact 2023 prices,” said Róisín Healy, deputy Features editor with The Sunday Times.
“With an energy crisis, student accommodation and rental crisis, landlords abandoning the market and a steep rise in the cost of renovations, first time buyers in particular are bearing the brunt and will have bidding wars and scarce supply to reckon with.”
Estate agents across the 26 areas of Dublin city say their main concern is the low levels of residential stock, particularly the much sought after walk-in, family homes.
Buyers are veering away from ‘fixer uppers’ due to rising renovation costs, lack of available builders and steep increases in energy costs.
Coupled with a rental market at crisis point and a lack of new developments and housing stock on the horizon, it is clear to many of the city’s estate agents that how these coinciding crises are managed will impact house prices even further.
This report reveals that cash buyers from overseas are buying well staged homes in the desirable Dublin 6 area. Meanwhile in the city centre, affluent families from elsewhere in Ireland and internationally are choosing to invest in a property rather than rent amid the chaos in the student accommodation sector.
Several estate agents report that prices will rise the most in areas where first time buyers are most active.
The Sunday Times Property Price Guide also reveals that the top five most expensive examples of three bed houses in Dublin are in the following locations:
- Ranelagh (€1.25m)
- Sandymount (€1.1m)
- Ballsbridge (€1.1m)
- Monkstown (€793,600)
- Blackrock (€761,500)
The top five most affordable examples of three-beds are unveiled as:
- Neilstown (€245,000)
- Ballymun (€260,000)
- Springfield (€270,000)
- Killinarden / Kiltipper (€270,000)
- Darndale (€270,000)
Further key insights revealed in The Sunday Times Property Price Guide include:
- Dublin city centre estate agent Owen Reilly said 60% of sellers in Dublin 2 were landlords exiting the market
- Nearly all agents reported a preference for homes in turnkey condition with a high BER, as period properties and second-hand homes in need of renovations are decreasing in value due to rising material costs and the availability of builders
- High prices are sustaining in traditionally affordable areas due to the high volume of buyers being priced out of more affluent areas. They are competing with investors looking for good value properties that will yield a better rent return
- Returning expats ready to buy in cash and affluent families buying homes for children attending college instead of renting are driving demand in some postcodes