At the beginning of the year, we encouraged investors to ‘Think outside the Pale’, and consider investment outside of Dublin as markets were beginning to skyrocket. Well, indeed they have, with the latest figures from Daft.ie showing a near 20% rise in rental prices in Connaught and Ulster with Munster not far behind on 15.6%.
Why?
It’s pretty simple really. Supply. Or lack thereof in this instance. The lowest numbers since 2006 are represented in Daft.ie’s latest findings with just 1,460 properties for rent at the start of November. That’s for the whole country. There were just 81 homes in total for rent in the 4 major cities outside of Dublin.
Coupled with never-ending Covid restrictions and work from home orders, people have turned their focus to more rural settings with good Wi-Fi and public transport. This has seen Munster, Connaught & Ulster enjoy a substantially larger increase in rental yields than those in Dublin. Prices in Dublin have climbed 6.7% in the same period (Oct 20 – Oct 21). Currently, there are only 800 homes available in Dublin.
Will prices keep rising?
We’ve asked this question many times and as ever nothing can be guaranteed and if you do intend on investing, you should always seek professional advice. But in the current situation, it is hard to see prices stabilising for some time due to the shockingly low level of supply and by the looks of things that isn’t going to change any time soon.
The Government is currently doing it’s best to rectify supply issues, but due to delays and supply chain challenges around the world due to the Covid-19 pandemic, the numbers will surely fall far short of targets set by the housing minister.
It doesn’t take much to figure out that prices may well indeed continue to rise.
As usual, if there’s anything at all that we here at KPM Group can help you with, please don’t hesitate to get in touch and a member of staff will be happy to help you in any way we can.
