Dublin 2: Farmers and emigrants step in as landlords make an exit from the market

Period properties such as 45 Pearse Square, which sold for €1.146m, are in big demand in Dublin 2

January 22 2022 02:30 AM

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Who would believe that farmers are now among the biggest buyers at Dublin 2 apartment schemes such as Grand Canal Dock and also of homes in pockets around Merrion Square and Grand Canal Street?

The trend started when universities closed during lockdown last year. Many young students found themselves returning home, wondering if there would be accommodation available to them when their colleges reopened. The uncertainty around student housing caused many parents to take matters into their own hands.

Just as it looked like the market in Dublin 2 was going to shut down, along came those parents to invest in property to accommodate their college-going kids.

While this has always happened in the city, agent Owen Reilly has never seen it happen on such a large scale.

Average Price €423,000
Areas South City Centre, Quays, Grand Canal Dock, Pembroke, Leeson, Temple Bar
Up + 3%
One Year Forecast + 3%
Assessing Agent Owen Reilly Property Consultants

“What’s driving it is how dysfunctional the rental market is right now, particularly for students,” says Reilly.

“A lot of people forget the universities kicked their students off campuses last March.

House Type	2021	2022	2023
One-bed Apartment	€305,000	€314,000	€326,000
Two-bed Apartment	€415,000	€423,000	€440,000
Three-bed Apartment	€487,000	€497,000	€512,000
2up/2Down	€443,000	€456,000	€470,000
3-bed Terrace	€481,000	€495,000	€510,000
1-bed Cottage	€311,000	€320,000	€330,000
2-bed Cottage	€432,000	€445,000	€458,000
Ex-Corporation 2-bed	€432,000	€440,000	€450,000
Ex-Corporation 3-bed	€461,000	€470,000	€480,000
2-bed Townhouse	€453,000	€470,000	€490,000
3-bed Townhouse	€492,000	€511,000	€532,000
2-bed Mews	€648,000	€667,000	€687,000
3-bed Mews	€729,000	€750,000	€775,000
3-bed Duplex	€487,000	€496,000	€510,000
Period 2/3 Storey-over Basement	€1,005,000	€1,025,000	€1,055,000
Period 4/5 Storey-over Basement	€1,537,000	€1,552,000	€1,585,000

"We’ve had farmers buying from us since last spring when nobody else was buying. They need to sort accommodation for their children because they’ve had absolutely nowhere to stay.”

Despite lots of disruption in the rental market as many office workers returned home, it seems the residential market in D2 is quietly ticking over.

Irish residents living overseas are making up 18pc of purchases for Reilly as they invest in a base in Dublin. Unable to get home due to restrictions, they are craving a stronger connection with the city.

Meantime supply has been improving following a period in the first half of last year when it was cut right back by 15pc during lockdown and restrictions.

Property Hotspot: Pearse Street

Large apartments and turnkey period properties anywhere from St Stephen's Green up along Pearse Street are in demand.

While prices are now up by 10pc across many Dublin suburbs, central D2 was effectively put to sleep by the pandemic, so it didn’t see the same demand.

Values have been rising more slowly — overall they up on average by 3pc on a year ago, but still higher than the 1pc experienced in 2020.

Reilly says a staggering 65pc of his vendors are landlords exiting the market and most are selling apartments. So when D2 starts opening up again, the lack of rental properties is going to be an even bigger issue than before.

Manageable period houses in Dublin 2 with big gardens are most in demand. An example is No 45 Pearse Square, which sold for €1.146m, a price unheard of a few years ago in this enclave.

Houses in need of renovation aren’t as easy to sell due to the rise in builder costs.

“Buyers are very conscious of the increase in renovation costs and lack of availability of contractors,” says Reilly.

“Eventually this will impact on property values of houses requiring renovation, in my opinion.”

He is predicting a similar 3pc increase for 2022, albeit higher increases for better properties and less for doer-uppers.

Dublin 2: Farmers and emigrants step in as landlords make an exit from the market

How much is your House worth in 2022?

Property Hotspot: Pearse Street

How much is your House worth in 2022?

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