From time to time, Philip Marley thinks it is good to take a look at Ireland’s real estate market as a whole to see where opportunity could lie even if it is out of your sector. Here is my latest information.
Residential
The people of Ireland have witnessed a steady continuous rise in housing prices. One of the major reasons that led to this rise is a shortage of demand as well as the supply of houses. The national residential property prices in 2018 were 8.44% and the prices are increased by up to 55% since 2013. Throughout Dublin, average asking price rose to 4.7% to €330,638 in the city center, 2.5% to €337,594 in North Dublin city, 1.5% to €311,916 in North Dublin County, 3.2% to €407,404 in South Dublin City, 1.1% to €300,842 in West County Dublin and a whopping 4.8% to €591,096 in South County Dublin.
Rental Yields on Residential properties
The people of Ireland have witnessed a steady continuous rise in housing prices. One of the major reasons that led to this rise is a shortage of demand as well as the supply of houses. The national residential property price in 2018 was 8.44% and the prices are increased by up to 55% since 2013.
Studies show that one-bedroom apartments will have a higher return on investment then two-bedroom houses and those, in turn, will earn relatively more than 3-bedroom houses, etcetera shifting the narrative to invest in smaller units.
In Dublin 1 a one-bedroom apartment bought for 215,000 pounds can make you earn passive money of 1,530 pounds per month producing a yield of 8.6%
Commercial Real Estate
Research from Cushman and Wakefield found that €3.2 Billion was invested into Irish commercial real estate during 2018 with 45% of which resided to office space. Dublin draws 90% of this investment mostly occupying secondary economic and suburban markets. In the office sector, figures show the fifth continuous year of taking up volumes which were, again, driven by players in the technology sector including Google and Facebook. Cushman & Wakefield expects “another strong year for take-up” with the level of demand forecast to drive prime rental growth of 4 percent to €673 per sq m in 2019.
Industrial Real Estate
77,100 sq m of space was occupied in Dublin in the first quarter and rental growth remains a key feature of the industrial market. After quarter one, prime rents sat at €100 per sq m, representing an annual increase of 9.9%. Cushman and Wakefield estimate further upward pressure as the year advances, with prime rents due to reach €108 per sq m.
Agricultural Land
The Farming Independent called agricultural land a “safe haven” for investors among farmers in Tipperary and Kilkenny making an average annual income of €33,000 and €305 per acre investors can expect a 2.8pc average yield per acre.
Conclusion
The research shows the rental yields on smaller units have shown time and time again to make more money than their larger equivalents. With demand continuing to grow one-bedroom apartments appear to be an up-and-coming investor’s best bet in Ireland.
