Back to site

©2024. All rights reserved.
Crafted by 4Property.

Navigating the Coming Year: Predictions for the 2024 Property Market

Understanding the Current Landscape:

Contrary to what many of us believe, pricing in the Irish Real Estate Market is cooling rapidly. The average house price in Ireland rose by 1.1% between Q2 and Q3 in 2023, and by 3.7% year on year. Although this may seem like a sizable increase, it marks a sharp slowdown from the double digit rises we have seen over the previous few years. When adjusted for inflation, house prices actually declined 4.1% year-on year to July 2023.

Earlier in the year for the first 2 quarters, we saw a period of falling house prices, but this has come to an end in Q3 of 2023. Houses are now being sold at an average of 3% above the asking price across Ireland – showing that demand is far outweighing the supply.

Going against the trend of the rest of the country, Kildare was one of the only counties in Ireland to see a reduction in house prices by 2.7% to Q3 2023.

Government Policies and Regulations:

After heavy criticism on the state of the Irish housing crisis, Irish Government policy is now very much focused on boosting the supply of housing to meet the current market demands. In the 2024 budget, €1.9 billion will be spent next year on delivering 9,300 social homes, and €265 million will go to providing 6,400 affordable housing units. However, they have been heavily criticised over whether this will be enough to make a real difference in the housing crisis, and it is clear that significant changes are badly needed.

They have also increased rent tax credit to €750 for 2024 and are introducing new tax reliefs for mortgage holders. Three €150 tax credits have been introduced between the end of this year and April 2024, which should also contribute to lessening the blow for homeowners.

Demographic Shifts and Housing Preferences:

Government predictions around migration have been proven to be far underestimating the reality of the current situation. Original Housing projections accounted for a net migration figure of 220,000 in this decade, but this number has already been surpassed in the first 3 years – this is contributing hugely to the housing crisis. The rate of  building of homes needs to be seriously increased to meet this demand. Ireland’s housing stock per capita is now the lowest across a range of different European countries.

In summary, our assessment of a continued lack of supply and high prices with potential stabilisation aligns with the broader trends observed in real estate markets. However, staying vigilant to economic, policy, and market-specific changes will be crucial for making accurate predictions. Always remember that real estate markets can be dynamic, and adjustments may be necessary based on evolving conditions. Do not hesitate to reach out for a chat with ourselves about any of this. We are here to help!

Pagespeed Optimization by Lighthouse.