After a decade of surging prices, record rents and persistent supply shortfalls, is the Irish property market finally turning a corner?
There are some encouraging signs. The State’s two largest home builders, Cairn and Glenveagh, have reported record output and enhanced delivery targets in recent weeks, noting an upswing in construction.
This was confirmed by property website MyHome in its latest report, published on Tuesday. It noted that homebuilding in Ireland hit a new post-crash record of 38,000 homes built in the 12 months to June.
It said this was enough to accommodate more than 100,000 people, which exceeded population growth (67,000) for the first time in the series, marking what MyHome described as a “milestone”.
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“This – along with a 12.5 per cent year-on-year increase in homes listed for sale on MyHome – is positive news for homebuyers,” the company said.
New home completions are expected to hit about 40,000 this year, still well below the Government’s target level of 50,000 but headed in the right direction.
The Government’s main aim in reforming the rent rules earlier this year was to entice institutional investors back into the Irish market. These are considered crucial to getting annual output up to 50,000.
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PRS (private rental sector) investment here stalled in 2022 amid a hike in borrowing and construction costs, leading to a marked slowdown in completions. Tough rent regulations were also cited as a factor.
While it’s too early to say if these changes have had the desired result, investor sentiment countrywide appears to be positive. Several industry leaders, including the bosses of Cairn and Glenveagh, claim the Government has got its policy mix right.
They point to the positive mood music around the State at the recent MIPIM real estate conference in Cannes.
The positive story is still punctured by the fact that prices continue to rise – at a rate of 3.9 per cent in the third quarter, according to MyHome – posing a big challenge for buyers.
