Tag Archives: dublin
Irish property prices on the rise again and now up 16.8% year on year
After two months of falling prices, property in Ireland is on the rise again with values up 0.9% across the country, according to the latest index. Residential property prices are now up 16.8% on an annual basis and in Dublin they are 22.8% higher than March 2014 after a 1.1% monthly rise. A breakdown of the figures from the Central Statistics Office shows that in Dublin house prices rose by 1% in March whilst apartment prices increased by 2.1%. However, a CSO spokesman pointed out that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. Outside of Dublin residential property prices rose by 0.7% in March and prices are up 10.7% compared with March 2014. Prices still need to catch up considerably before reaching anywhere near their peak levels of 2007. At national level prices were 38.2% lower than their peak level. Dublin house prices are 36.9% behind, apartment prices 42.2% lower than their peak and Dublin residential property prices overall were 38.7% lower than their highest level. Outside of Dublin residential property prices are still 41.5% lower than their highest level in 2007. However, the 16.8% overall year on year rise in property prices is the largest annual increase since the height of the property boom and confirms that the real estate market is heading in the right direction in a steady manner. According to Alan McQuaid from Merrion Stockbrokers the monthly declines in house prices in the first two months of 2015 were probably weather related, with the lack of supply the key driver of prices. ‘Although the tighter lending restrictions imposed by the Central Bank and the end of the Capital Gain Tax property purchase incentive scheme may weigh negatively to some degree, it appears that house price growth may be stronger in 2015 than we previously envisaged,’ he explained. He believes that the improving economy should sustain the house price recovery in the short term even with credit restrictions. Continue reading
UK buy to let sector surging ahead, it is claimed
The UK’s buy to let sector surged ahead of other areas of the housing market in January, according to the latest research from Connells Survey and Valuation. While most of the housing market began the year with a subdued outlook, buy to let bucked this trend and was the strongest performing sector with 37% growth in activity since the previous month, and on an annual basis the smallest dip of just 4%. It means that the sector has bounced back from a disappointing performance in December 2014 when it recorded one of the biggest monthly falls, according to John Bagshaw, corporate services director of Connells Survey & Valuation. He believes that as landlords are now ‘spoilt for choice’ with a record number of mortgage products to choose from, they are beginning to invest more. Low mortgage rates have also continued, posing even more attractive deals for potential landlords or those expanding portfolios. The first time buyer sector of the housing market was the only other sector which saw a monthly increase in valuations activity. On a month on month basis, activity for first time buyers increased by 3% though on an annual basis it saw one of the biggest falls of 28% compared to January 2014. ‘First time buyer activity increased on a monthly basis despite a stark contrast in performance with January 2014 when this sector had dominated the housing market. This was largely due to the flurry of activity as customers rushed to secure deals before the Funding for Lending Scheme (FLS) stopped mortgage funding at the end of January 2014. At the time the policy had boosted the housing market, particularly first time buyers by lowering mortgage rates,’ said Bagshaw. ‘Since then however, a series of policies have been introduced that have restricted lending criteria which have affected first time buyers more than other sectors and consequently had a major impact on demand. However, this month on month growth is encouraging and indicates that as the sector stabilises and adjusts to the new regulatory landscape, it should continue improving in the coming months,’ he explained. By contrast, activity for those already on the property ladder has been subdued. On a monthly basis activity dipped by 4%, though compared with January last year, valuations activity fell by a steeper 23%. Similarly, remortgaging saw one of the biggest falls in activity both on a monthly and annual basis. Since December, recent activity fell by 25%, while compared with January 2014 it decreased by 28%. ‘The current economic outlook indicates that low inflation and therefore the low Bank rate will continue for some time. As a result it appears that this is giving rise to optimism as more borrowers anticipate that lenders will be able to lower their mortgage rates even further. They are now waiting before securing a deal,’ said Bagshaw. ‘However, it is… Continue reading
Economy driving Dublin office market recovery
Strong economic fundamentals are set to drive continued recovery in the Dublin office market in 2015, according to a new analysis. Overall the performance of Dublin’s office investment market will be increasingly linked to ongoing economic performance rather than dramatic change in capital market expectations, says the report from Knight Frank. It predicts that rents will grow to between €55 and €57.50 per square foot in 2015 and political risk is the greatest cause for investment uncertainty in 2015. However, the critically low availability of prime city centre space will induce increased take-up in the suburbs this year and the rise of the concept of the Global City will play an ever increasing relevance for Dublin in 2015 and beyond. Office take-up reached 2.48 million square feet in 2014, a 28% increase on 2013 and the highest level seen since 2007. An increase in the number of deals was the main driver of the increase in take-up with 228 agreed over the course of the year, compared to 190 in 2013. The Dublin market is now dominated by the Technology, Media and Telecommunications (TMT) sector which accounted for four of the five top deals and for approximately half of take-up in 2014. Tenant demand continues to be concentrated in the city centre and with a Dublin wide vacancy in the order of 12.9%, the suburban market was disproportionately affected by the economic downturn, although the critically low availability of prime city centre space will induce increased take-up in the suburbs in 2015, the report explains. It points out that this should help build on the recent recovery of suburban rents to levels in excess of €20 per square foot, up from €12 to €15 per square foot at the bottom of the market. The lack of new office supply, combined with strong occupier demand, has put severe upward pressure on prime city centre rents in 2014, increasing from €35 per square foot to €47.50 per square foot over the course of the year. ‘We expect the pace of rental growth to moderate somewhat with rents forecast to be between €55 and €57.50 by year’s end which would represent a year on year growth of at least 16% in 2015, down from the 36% witnessed in 2014,’ the report says. Further speculative office development is due to come on stream in the second half of 2016. ‘Due to the lack of supply coming on stream in the short term, it is likely that a significant amount of pent-up demand will have emerged by then, providing plenty of scope for further development potential,’ the report adds. ‘Dublin has a compelling global identity that has allowed it to punch above its weight on the global stage, enabling it to successfully pivot to the world’s leading companies. With the continued rise in importance of the concept of the Global City, the global challenges and opportunities that face the Dublin office market have never been greater,’ the report says. ‘With… Continue reading
