Dublin Housing Situation
Are we facing a housing crisis at this moment in Ireland? Yes, there are difficulties experienced across the country but there are valid reasons to explain the sudden spike and recently there have been measures taken to counter this. In 2018 alone there were 18,000 jobs added in the tech industry here in Ireland and the future of tech jobs in the market looks furthermore promising. This increase in jobs leads to an increase in the population in the country as it begins to attract talent from outside the country as well. Due to this rapid increase in people moving into the country and moving around within the country, the demand for housing and the supply of affordable homes in different areas has reached a state of imbalance. The demand has exceeded supply. Now the capital- Dublin’s rent is expected to rise by 17% by 2021, due to lack of supply. This is the existing situation, but there are measures being taken and plans being made to counter the this crisis.
There is a lot of talk about how critical the housing situation is in the country at this moment, as the demand and supply do not seem to match. But there is an effort being made in the right direction to help make a difference. For instance, construction is finally moving in a positive direction with over 18,000 houses being built, which is a step further than 2017, when the number was recorded at 15,000. This increase in the number of available houses is a step towards decreasing the level of imbalance. Also the number of houses available for sale has gone to 4,800 at the end of 2018. These numbers are essentially the number of houses that are available for sale over the number available for rent. As stated in the article on Independent.ie, the only drawback of the increasing future availability of properties being developed, is the lack of focus on apartment buildings as mentioned by CIF (The Construction Industry Federation) government relations direction Shane Dempsey.
The latest updates from daft.ie’s report for Q1 in 2019 shed light on the fact that the inflation in prices for property within Dublin is lower in comparison to places outside Dublin. In certain areas within the city, the inflation remains unchanged in comparison to the regions outside Dublin. The report also indicates that the number to maintain the balance between demand and supply of houses is at 4500 properties and by coincidence, that is the exact number of houses available in the market as of the start of this year. As long as the supply remains stable, the pressure on the prices would be low which would further ensure no sudden spike for the rest of the year. That’s a splash of positive news, we believe!
A lot has been said about developing properties available for ‘Sale’, but there is a strong majority of people out in the market looking to rent instead. According to the latest article published in the Irish Times, 600 new homes will be added to South Dublin with the intention of renting. Out of these, 300 of them will be cost rental accommodation with rent prices at €1350 euros for 2 bed-room compared to local market of €1850.
We’re sure if you’re planning on making a shift, you will have further questions to gain a first hand understanding of the situation. Get in touch with us and we will try to help you out during this transition period. You can email us at email@example.com. Also, if you’re looking for new roles in the tech sector, you can check out the live roles we’re looking to fill at this moment and apply to the one that matches your profile. To keep up with the latest developments in the Irish Market, follow us on LinkedIn, Facebook, Instagram and Twitter .