Property prices in Limerick’s suburbs have leaped by 11pc in the last year.
What’s happening to property prices in the suburbs is directly tied to the expansion of companies such as Edwards Lifesciences. In 2019, the medical technology firm announced it would be expanding its Castletroy facility and adding 250 new jobs. That’s now been upscaled to 850 new jobs.
There’s also Johnson and Johnson, Regeneron, Northern Trust and more. All have been adding to their workforces at higher rates than expected. All are based in Limerick’s suburbs, turning them into a regional economic powerhouse.
“The suburbs are the place to be,” says Ailbhe O’Malley of Sherry FitzGerald. “So everyone wants to live near where they’re working.”
O’Malley estimates that 50pc of the buyers in Limerick’s suburbs in 2021 were new to the city. Of these, about half were returning home from elsewhere while the other half were coming from elsewhere in Ireland but also from places as diverse as India and China.
And those who have previously been used to renting have been running into Limerick’s lettings shortage, possibly the worst of any Irish city.
|Detached 1500-2000 Sq Ft||€435,000||€483,000||€513,000|
|Detached 2000+ Sq Ft||€536,000||€595,000||€635,000|
And when they move to buy, they run into a shortage of homes for sale.
The average price of a three-bed semi has broken through the €300,000 barrier to hit €322,000 and is likely to hit €355,000 by January 2023.
Four-bed detached homes are averaging €433,000 and could be north of €460,000 by this time next year. The most demand is for family homes in Castletroy, Annacotty, Dooradoyle and Raheen.
However with recruitment on the up with the multi-nationals, all types of property are in demand, from apartments to luxury homes. Unlike the city centre, there are some new homes coming on, albeit arriving to market in small helpings and in dribs and drabs. At Mungret Gate, a release of 14 homes sold out in one week. There have been other releases at Ballyneety Road, where three- and four-bed semis went for €355,000 to €420,000.
Larger homes are expected to perform well here with employers in the area hiring and good schools on the doorstep.
At Castlebrook Manor in Castletroy, BER A-rated three-beds were going for €380k, which illustrates the growing difference in values for new versus second hand. Looking ahead, Ailbhe O’Malley is predicting average price increases of 7pc in the suburbs this year.