Buying a home is €500-a-month cheaper than renting property in capital
It is now €500-a-month cheaper to buy a suburban home in Dublin than to rent, housebuilder Cairn Homes has claimed.
The developer based the claim on the example of a three-bed house at its Parkside scheme in Dublin 13. The real cost of buying a €334,750 home is now €494 a month less than the equivalent rent for a couple with a joint income of €86,000, Cairn said.
The gap between rental costs and buying has widened even though house prices are rising.
Compared to 2014 it is now 37pc cheaper to buy than rent - even factoring higher wages and house-price inflation, Cairn said.
The stock market-listed house builder sold 418 residential units in 2017 it said yesterday, up from 105 in 2016.
The company is behind new residential estates in the north Dublin suburb of Balgriffin, and Churchfields in Ashbourne. The average price for a sold property increased to €315,000 in 2017, up from €295,000 in the previous year, partly because Cairn completed more expensive schemes.
The developer's schemes include houses, apartment blocks and student accommodation.
It builds mostly to sell to occupiers, but said yesterday that a formal sales process had been launched for its Hanover Quay site in central Dublin, with a view to selling the entire development as a rental scheme.
Rising rents are hammering younger workers in particular and a concern for employers as a result.
Accommodation in Dublin is repeatedly being seen as an issue for tech companies according to David Tighe, Bank of Ireland's head of open enterprise and innovation.
Speaking at the Temenos Innovation Jam, a technology sector event in Dublin yesterday, he said accommodation was an issue for tech companies in the capital but that cities such as Galway, Limerick and Cork were offered fascinating opportunities for companies, and that supports were in place for these companies outside of Dublin.