Estate agents expect property prices in the Republic of Ireland to increase by an average of 4.5% over the next 12 months – largely due to a lack of stock.
Three out of four agents report low stock levels, with almost half saying the lack of supply is the main driver of price inflation.
This comes despite four in five (80%) agents describing current property prices as expensive or very expensive.
The research comes from the SCSI Residential Property Mid-Year Market Monitor 2024.
Gerard O’Toole, vice president of the SCSI, said: “75% of agents reported low stock levels, up from 71% 12 months ago, highlighting the ongoing issue of insufficient supply.
“Our members are seeing the impact of the lack of supply on the ground and believe this shortage will continue until annual completion levels ramp up significantly.
“A year ago, 35% of agents identified the lack of supply as the main issue for the price movements, now that number is 46%.”
Other factors agents reckon are ramping up prices include the state of the economy, interest rates and the availability of credit, access to schemes supporting house purchases such as Help to Buy and changes in the levels of immigration and emigration.
As it stands, the average price for a 3-bed semi stands at €418,750 in Meath, €487,821 in Kildare, €502,173 in Wicklow, €429,667 in Cork, and €424,375 in Galway.
Ireland has seen an increase in the number of buy-to-let properties coming to market over the past six months, though the rate of increase has fallen since Q4 2023.
For 3-beds, rents ranged from €2,139 in Meath to €2,475 in Wicklow. Including reasonable living expenses of €3,504 for the family of four, this means that the estimated total expenses for a family renting in Meath would be €5,643 while it would be €5,979 in Wicklow.
Toole added: “These figures show just how challenging it is for a family to rent a home in Ireland and the minimum salary level required. In Meath, for the family renting a 3-bed semi, the rent comprises 38% of total living expenses, while in Wicklow, it comprises 41%.
“For a family renting a 2-bed terraced house in Galway and Wicklow, the figures are 33% and 37%, respectively.
“It is generally accepted that spending more than 30% of income on rent is an overburden and makes renting unaffordable. We will continue to gather and monitor this data and share it with relevant stakeholders.”
