The average listed price for homes in Ireland increased by 6.1% in 2022, according to the latest Daft report (download report). This marks a smaller increase than in the previous two years, but it should be noted that the market pre-COVID-19 was in balance, with a slight fall of 1.2% in 2019. The report also found that prices outside Dublin increased by 6.9%, compared to 5.0% in the capital. Within Dublin, certain postcodes saw stronger growth, such as Dublin 6 and Dublin 15. The report also found that prices nationally showed strong growth in the first and second quarters of 2022 at 2.9% and 3.6%, respectively, but in the third quarter, prices were static and in the fourth quarter they declined by 0.4%.
The MyHome Q4 report (download report) shows that house prices have been more resilient than some anecdotal evidence suggested. Asking prices fell 0.4% in Q4, up 6% on the year. Prices fell more sharply in Dublin, by 0.8% in Q4, up 3.6% on the year. However, the key message is that the market remains extremely tight, supporting prices despite the headwinds of higher ECB rates and macroeconomic uncertainty. Looking forward, the Central Bank’s surprise decision to loosen the mortgage lending rules could mean our forecast for a 4% rise in house prices in 2023 is too conservative (Davy view).
CBRE Ireland Market Outlook 2023 – RENTAL DEMAND WILL BE RESILIENT IN 2023
The supply-demand imbalance in the Dublin rental market will persist in 2023. The outlook for occupancy levels at multifamily schemes and the continued demand for rental accommodation will remain robust. Irish net migration patterns and population growth also continue to point to increased housing demand. The employment market remains in a healthy position as we enter 2023 and has a relatively positive outlook, particularly compared to other European cities. We expect to see further upward pressure on average rent prices in 2023, possibly by up to 4%.