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Rural property will appreciate sharply compared to Irish city homes in 2021

According to the latest Daft report, house prices in rural areas have increased at a higher rate than in cities over the past year.

The national average price for the final quarter of 2021 was €290,998, up 0.6% from Q3 and just 21% below the Celtic Tiger peak.

House prices have increased by 7.7% in 2021

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House prices have increased by 7.7% in 2021Credit: Paul Sharp – Authorized by The Sun Dublin
Author of the Daft report, economist Ronan Lyons

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Author of the Daft report, economist Ronan Lyons

The smallest increases were in urban areas, with prices rising 1.6 percent in Galway and 3.4 percent in Dublin.

In the city of Cork, prices increased by 5.5%, while in the cities of Limerick and Waterford, the increase was 6.4% and 7.5% respectively.

But outside the five main cities, prices have increased by an average of 11.5% in 2021.

The increase in rural areas of Munster was 9.2%, while in Leinster excluding Dublin, prices increased 11.9%.

The biggest price increase in the country was in Connacht-Ulster, where prices surged 14.6% in 2021.

According to Daft, house prices will increase by an average of 7.7% in 2021.

Most read in The Irish Sun

Fewer than 11,500 homes were for sale on December 1, the lowest total recorded since July 2006, when online advertising was still emerging.

This represents a one-quarter decline from the same period last year. The total number of real estate ads for sale in the year to December 1 was just over 54,000, the highest total in 12 months since the start of 2020.

While supply has improved, it remains below pre-pandemic levels – with nearly 70,000 homes for sale in 2019.

Commenting on the report, author Ronan Lyons, economist at Trinity College Dublin, said: “List price inflation continues to cool from its mid-year peak.

“However, at almost 8% for the year, it remains high. This reflects a combination of unusually strong demand and ongoing weak supply.

STRONG DEMAND

“Demand for home purchases, which has been on the rise since the mid-2010s, received an unexpected boost during the Covid-19 pandemic, with potential buyers able to save ‘accidentally’ as spending decrease during the door lock time.

“Meanwhile, both new and second hand supplies remain weaker than expected before the pandemic. While the pandemic has changed some specifics, the overall health of the housing market has remained largely unchanged – which is characteristic of weak supply in the face of strong demand.

“For that reason, additional supply – not only for sale but also for the market and social rentals – remains key to addressing Ireland’s chronic housing shortage.”

The average in Dublin City is now €405,259 – up 3.4%, while in Cork City it is €313,436 – up 5.5%.

In Galway City, the average price was 322,543 Euro, up 1.6%, while in Limerick City the average price was 234,908 Euro – up 6.4% and in Waterford City it was 211,023 Euro, up 7.5 %.

https://www.thesun.ie/money/8127588/properties-housing-ireland-rural-price-city/ Rural property will appreciate sharply compared to Irish city homes in 2021

Fry Electronics Team

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