Thinking About Buying a Home In Dublin? What you need to know
Want to buy a home in Dublin?
Overview of Dublin property market May 2020
The current population of Dublin is c.1.38million (2019 figure) and rising.
With an average density of 2,008 people per sq. km, compared with 27,000 people per sq km in Manhattan, NYC or 5,500 per sq. km in London.
- Increased supply of both new builds and second hand property has caused a general slow down in house price growth in Dublin since the most recent property price peak in mid 2017
- The "average price " of a property in Dublin (May 2020) is €376,000 in the Dublin city area (the city area describes areas with a number after them eg. Dublin 1, Dublin 7, Dublin 18 etc) as compared with properties in the "County" Dublin areas, the more suburban parts which average €388,0000.
- In my view it's not that useful to talk about "average prices" in the Dublin market given that the Dublin property market is effectively comprised of many "micro" markets, each with their own pricing structure.
- Properties close to a LUAS or a DART station ( the LUAS and the DART are urban train systems) are typically 26% more expensive than those not close to a LUAS or a DART station.
- In general properties on the south side of the river Liffey are more expensive than those on the north side of the Liffey eg
- The population of Dublin is multicultural with big software companies such as Facebook, Google, Air BnB, Twitter, LinkedIn etc currently positioned in Dublin 2 and Dublin 4. These companies employ a diverse range of nationalities.
- Most houses are for sale on a freehold basis whereas apartments are bought on a leasehold basis.
- The lower end of the market ( properties up to €400,000 ) is the busiest. Properties over €1m are the slowest to sell.
- The more expensive the house, the quicker it is to lose value during a property down turn.
- In my view, the most reliable and detailed information on the Dublin property market is compiled and written by Dr. Ronan Lyons, assistant professor economics in Trinity College Dublin . Dr. Lyons writes all of the quarterly property reports on one of the two main Irish property portals, DAFT.ie This is a link to Dr. Lyon's most recent report on the Dublin and Irish property market: https://www.daft.ie/report/ronan-lyons-2020q1-dafthouseprice
Buying for Investment
Both Dublin city and county are classed as a Rent Pressure Zone (RPZ). This means that properties within this zone are subject to certain rent regulations.
The key thing investors need to be aware of is the fact that if you buy a property in a RPZ that has been rented out within the last two years, the amount of rent you can charge for this property will be closely tied to the rent that was charged during this two year period, despite the fact that you are a new owner of the property. Click here to read the precise regulations. https://onestopshop.rtb.ie/rent-pressure-zones/
Buying investment property in Ireland. Tips from a Buyer's Agent. Click to play.
What do you need as a buyer?
It probably goes without saying that a buyer needs funds to buy the property. It's usual that the estate agent handling the sale of a property you are bidding on, will ask you for proof of funds. There are two types of "proof of funds" that are, as a rule, acceptable:
1. A letter of loan offer from your bank, dated and addressed to you with a file number on it. This is distinct from the more cursory "indicative approval" letter that a bank can provide after a fifteen minute call or meeting.
2. A bank statement showing sufficient funds or a letter from your bank confirming that you are in a position to buy at the level you are bidding at without recourse to borrowing
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