Living next to a Luas stop can add 15pc to the value of your property
Living next to some Luas Red Line stops is having a negative impact on property prices but rail lines in suburban areas are seeing prices increase by up to 15pc, according to a new report.
The value of homes in close proximity to the recently extended Luas stop in Saggart has decreased by five percent.
The rail-line study by Daft.ie found that, on average living next to a Luas or Dart station in the city, would increase the value of a home by six percent and rental prices by two percent.
Trinity College economist and author of the report Ronan Lyons said one of the most significant rises has been in the areas close to the extended Luas Green Line stop at Cherrywood.
"One stand-out figure was Cherrywood, where prices were between 10 and 15pc higher after the Luas than they were before, and rents were between five and eight percent higher," Mr Lyons said.
"It varies so much across the different lines, so the Dart and the Luas Green Line had a big impact on prices, but the Luas Red Line didn't - at least not on house prices.
"That highlights the importance of security and safety, that some stations will be of clear benefit but others, if they're put in an area where it may actually encourage anti-social behaviour, may actually mean that being very close won't be a good thing," he said.
"It seems to be that being right on top of the Red Line stations does have a negative impact compared to other properties in the area which just aren't as close," he added.
Another aspect highlighted in the report was the interest sparked in areas where new infrastructure is being put in place, such as the cross-city Luas project which is currently under construction in the capital. Mr Lyons said that buyers are aware of the positives associated with living next to a rail line.
"If you look at the cross-city Luas, you're probably seeing an increase in interest because they will be close to Luas stops, even though there's nothing there just yet.
"More recent figures this year and next year, you will see an effect in those areas, in the same way that Cherrywood had a big impact on prices" because of Luas, Mr Lyons explained.
"In probably three years' time we can do the same with the cross-city Luas and look at before and after prices," he added.
While there has been a rise of sorts in rental prices, it has been significantly less than that of sale prices. This is down to the possible sell-on value for the buyer, according to Mr Lyons.
"The owners not only gets the benefit of the service now, they also get to sell it on," he said.
"If you go buy a house that's close to a Dart station, if you subsequently sell the house, you'll be able to sell the fact that it's close to a Dart station.
"If you're a renter, when you pay the extra rent, as soon as you move it's gone and you don't get that benefit."
The report, released today, was based on the average prices of two-bedroom apartments that are within one km of each Luas station.