5 Key Predictions for the Irish Property Market 2022
5 Key Predictions for the Irish Property Market 2022
House prices in Ireland rose by 12.4% between September 2020 and September 2021. Huge increases have been seen both in and outside of Dublin, with the pandemic prompting many to leave the capital.
The situation is reminiscent of the pre-2008 crash, although overall, the national index is 7.4% lower than its highest level in 2007. So, what does 2022 have in store for the property market? Will there be a crash? Or will house prices continue to soar?
We’ve examined what the experts are saying. Here are five key predictions for the Irish property market in 2022.
House prices will climb by 5% in 2022
Goodbody chief economist Dermot O’Leary predicts that property prices will climb by 5% in 2022. This represents a slowdown compared to 2021, but nevertheless, 5% is still a stable increase. This will either be good or bad news depending on your situation. Many will be priced out of the market, despite the government’s ‘Housing for All’ scheme. On the other hand, those wanting to sell could make a significant return on their investment.
More landlords will leave the market
Shane Fleming, from Fleming Real Estate, anticipates that more landlords will leave the market because they are no longer in negative equity. The rise in house prices could be a good opportunity for investors to cash in. This means there will be more property for sale on the market, but fewer rentals. This will compound the existing demand/supply issue, where the number of tenants exceeds availability. This has pushed rental prices up, a trend that looks set to continue.
Greater demand for housing
Ireland’s population has risen to above 5 million for the first time since 1851 according to figures released by the Central Statistics Office. This is thanks to positive net migration and a natural increase. Population growth means a greater demand for housing in Ireland. This is positive for sellers. However, problems could come for those hoping to sell their current home and buy another, as they may struggle to find their next property.
More housing stock – but not enough
The government’s Housing for All plan is due to begin in 2022, described by Minister for Housing Darragh O’Brien as the “largest State building programme in our history”. A total of 312,750 homes are set to be built between 2022 and 2030, 90,000 of which will be social housing. However, this follows a lag due to the pandemic, where the Central Bank estimates that 15,000 fewer homes have been built over the past two years than expected. This deficit, combined with the population increase, means demand will likely still outstrip supply for 2022.
Mortgage lending to increase
Experts are predicting that mortgage lending will increase even further in 2022, ranging in the region of €12 billion. If so, it would be the highest level since the 2008 crash. Davy Stockbrokers believes house completions will amount to 29,000 in 2022, thanks in part to the planned shared-equity scheme for first-time buyers.
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Of course, this is only a forecast: it remains to be seen what 2022 has in store for the Irish property market. However, it could be a very busy year thanks to greater demand, new government initiatives and a continuing rise in house prices.
If you are buying or selling a property in Ireland, you will need a conveyancing solicitor to manage the legal aspects of the transaction. At Mullins & Treacy LLP Solicitors, we deal with all areas of residential property law. We take the stress out of the equation.
Call us on 051 391 488 or email reception@mullinstreacy.ie for a no obligation enquiry. We are client focused and results driven.
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