The following is an extract from an article that appeared in the Irish Times on the 1st December 2016. In the article, Director of Residential at Knight Frank, Rena O'Kelly, provides an overview of the residential market in 2016 and looks forward to 2017. To read the full article click here.
Against the backdrop of national and global uncertainty, the Dublin residential market has shown great resilience. Prime and super-prime properties, which are mostly financed by cash, have continued to transact strongly with transactions of more than €1 million up 24 per cent in the year to the third quarter of 2016 compared to the same period in 2015.
The outcome of the Brexit vote shone a spotlight on the Dublin market for investors, particularly from Asia, attracted by low purchase costs and a market in recovery. This inconsistency in the market where not all sectors are performing at the same rate has created a fragmented market which is also price sensitive.
The outlook for 2017 is slightly improved by the easing of restrictions on first-time buyers which will bolster the first-time buyers’ market section and go some way to easing the pressure on the rental sector. Despite uncertain times in the wake of Brexit and the election of Donald Trump in the United States, a single-digit increase in the Dublin market is expected in the region of 5 per cent for 2017.
Low levels of supply, with just 2 per cent of housing stock available, looks likely to continue to be a feature of the market in 2017.