House prices 'must drop radically' to lure investors
Wednesday November 25 2009
RESIDENTIAL investment properties would need to fall in value by between 20pc and 56pc to make them a profitable proposition, a new report has found. The report says rents need to double, or values fall radically, to tempt investors back into the market.
Dublin property prices would need to fall to €256,293 for property investment to make sense. Cork prices would need to fall to €119,324, with Galway prices needing to fall to between €119,324 and €205,296.
Alternatively, rents would need to rise to €1,785 a month in Dublin, or €1,490 in Galway, according to the Residential Property Investor Report produced by Irish Mortgage Brokers and PropertyWeek.ie.
Higher
Prices are considerably higher than this at the moment, while average monthly rents are around €771.
"In the case of the Irish property market, we don't see recovery on a widespread level any time soon, and would argue that it will likely be pockmarked (in different neighbourhoods) and stratified (at different price levels)."
Meanwhile, Housing Minister Michael Finneran has launched a service that puts buy-to-let investors in contact with local authorities that want to rent out properties for those on the housing list.
Mr Finneran said at the launch of property website Click2.ie that around €40m would be provided in the Budget for long-term leasing of private properties by local authorities.
- Charlie Weston
Irish Independent
