Dublin 7: Strong rental market keeps pockets of Dublin 7 on the up
Properties in Dublin 7, a huge number of which are terrace homes, have seen values hike by 7pc on average as we enter 2016; settling down after the previous year in which runaway value increases of 18pc were experienced.
Vinnie Mullen of DNG is reporting 2015 as having been a generally good year, with a large volume of properties sold to first-time buyers up to and including the €220,000 figure, after which a 20pc deposit is required. He has also seen particular interest in period investment properties, with many being snapped up by investors based in Dubai and Abu Dhabi who are paid in dollars and see this market as a good place to park their earnings.
"Similarly," says Mullen, "anyone who invested in London and is selling a flat there for £500,000 is able to cash in and buy something much more substantial here."
Investors are buying 80pc of large period houses, with 20pc being bought as family homes. Investors are upgrading these properties, many of which are in run-down bed-sits, and making five or six units where formerly there might have been ten. The rental market is pushing demand for this, says Mullen. Dublin 7 is, of course, home to the new DIT campus at Grangegorman, and the Luas line is under construction with a station due to open in Cabra. These factors are responsible for prices in that pocket of Dublin 7 accelerating over and above other areas.
"Phibsboro and Stoneybatter are still considered very trendy, and Shandon in Phibsboro, where the houses are red-brick Edwardians, is always popular. Prices there have been strong this year."
For 2016, Mullen predicts that rents will continue to go up, as the 20pc deposit requirement means that first-time buyers are renting for longer.
"Stock levels dropped in the last quarter of 2015," he says, "far more so than previous years, but I am hoping that more supply comes on stream early this year."