The Institute of Professional Auctioneers and Valuers (IPAV) has presented a report that underscores a notable divergence in housing inflation rates across the nation, particularly spotlighting the fervent pace at which property prices in regional areas are outstripping the national average.
The latter half of 2023 witnessed a remarkable trend: while Dublin’s housing market showed signs of reaching its zenith, the price of homes outside the capital city surged by an impressive five to seven percent. This regional price inflation starkly contrasts with the more subdued growth observed within Dublin, hinting at a geographical redistribution of housing demand.
IPAV’s latest Residential Property Price Barometer offers an insightful lens into these developments, attributing a 2.99 percent increase in national home prices during the second half of 2023 to this regional dynamism. The analysis, diligently compiled by IPAV, reveals that the average price of a home in Ireland ascended to €335,520 during this period, propelled by robust activity outside Dublin.
The most dramatic regional performance was recorded in Mayo, where the price for a three-bedroom home climbed by 7.32 percent, reaching an average of €220,000. This significant uptick, as highlighted by IPAV, exemplifies the broader trend of accelerating property values in Ireland’s regional locales.
Pat Davitt, IPAV’s chair, provides context to these figures, noting the persistent supply scarcity that underpins the market’s dynamics. The demand for housing, fueled by both non-Irish nationals and returning emigrants, remains vigorous, further intensifying the price escalations observed across various property types.
In dissecting the landscape further, IPAV’s analysis distinguishes Dublin 4 as the priciest district for homebuyers in the latter half of 2023, with average dwelling costs soaring to €917,500. This is juxtaposed against more accessible markets such as Longford, where the average home price stands at €165,000, offering a stark representation of Ireland’s diverse housing economy.
The disparities in price growth among different property types and locations are meticulously detailed in IPAV’s report. For instance, four-bedroom houses in Cavan witnessed the steepest price increase, surging by 7.78 percent to €242,500. Conversely, certain Dublin districts and Wicklow experienced stagnation or nominal declines in property values, underscoring the heterogeneous nature of Ireland’s housing market.
The apartment sector, too, reflects this variability, with Cork County leading the charge with a 7.5 percent increase in two-bedroom apartment prices. This contrast with the more modest growth observed in Cork City suggests a shifting preference towards better value propositions in county areas, as noted by IPAV.