Irish House Prices Continue to Soar
Table of Contents
Table of Contents
Concerns About Overvaluation and Debt
The Economic and Social Research Institute (ESRI) has raised concerns about the potential overvaluation of Irish house prices, estimating them to be up to 10% above their true worth. Simultaneously, an increasing number of households are facing “elevated” levels of mortgage debt, adding to the worries surrounding the affordability of housing in the country.New Home Construction Lagging Behind
While new home construction is underway, it is falling short of the necessary targets to address the housing crisis. EY-euroconstruct, a network of construction experts, predicts that approximately 32,000 new homes will be completed by the end of 2024. This figure is substantially lower than the target of “almost 40,000” set by outgoing Taoiseach Simon Harris earlier in the year. Looking ahead, EY-Euroconstruct anticipates that next year could see 38,000 new homes built, with the number rising to 40,000 in 2026. However, the Central Bank estimates a much higher need – 52,000 new dwellings annually – to effectively tackle the prolonged housing shortage. The government has pledged to build 50,000 homes per year over the next five years. Ireland faces a pressing housing shortage, with an estimated 62,000 homes needed annually to meet demand. This crisis was a central issue in the recent general election, prompting all political parties to propose aspiring construction plans. Recent data indicates a surge in housing commencements, reaching 54,575 units through November 2024. This marks an 84% increase from the previous year, attributed in part to the impending expiration of progress levy waivers and water charge rebates. Experts believe this trend will result in a stronger delivery of new homes in 2025 and 2026. “The formation of a new government must prioritize housing at the top of its agenda,” stated ms. Finnegan. she emphasized the importance of extending the Help-to-Buy scheme, which provides tax breaks to first-time buyers, and attracting private equity investments to Ireland as crucial steps in addressing the crisis. The Help-to-Buy scheme, already utilized by approximately 50,000 buyers since its introduction, was extended to the end of 2029 by Minister for Finance Jack Chambers in october.## The Irish Property Boom: An Interview with Alex Reed, Housing Expert
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**Host:** Welcome back to Archyde News. Today we’re tackling a topic close to home for many: the soaring property prices in Ireland. Joining us to shed light on this complex issue is Alex Reed, a leading expert in Irish housing. welcome to the show, Alex Reed.
**Alex Reed:** Thank you for having me.
**Host:** Let’s jump right in. The country’s largest estate agent,Sherry FitzGerald,predicts another 10% surge in second-hand home prices in 2025. This would be the third consecutive year of accelerating increases. What are your thoughts on thes projections?
**Alex Reed:** These projections, while alarming, are regrettably believable given the current market conditions. The persistent shortage of housing supply is a major driver behind these dramatic price hikes.We’re seeing a high demand for housing across both urban and rural areas, leading to intense competition among buyers and pushing prices upward. [[ 2]]
**Host:** So, what can be done to address this crisis? Are there any promising solutions on the horizon?
**Alex Reed:** [guest Name provides their insights on potential solutions, drawing from their expertise. This could include government policies, construction initiatives, or innovative housing models.]
**Host:** it’s clear this isn’t just an urban issue. Sherry FitzGerald’s report indicates that rural areas are experiencing significant price growth as well. What factors are contributing to this trend?
**Alex Reed:** [Alex Reed Name elaborates on the reasons behind price increases in rural areas, exploring factors such as remote working trends, lifestyle changes, and limited housing options.]
**Host:** Looking to the future,what potential long-term consequences do you foresee if this trend continues unabated?
**Alex Reed:** [Alex Reed Name discusses the possible consequences of continuously rising house prices,including affordability challenges,social inequalities,and potential economic instability. ]
**Host:** Alex Reed, thank you for your insights and for shedding light on this crucial issue.
**Alex Reed:** My pleasure. I hope this discussion encourages further dialog and action on this pressing matter.
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**Note:** This is a template. You’ll need to fill in the blanks with data specific to your guest, their expertise, and their opinions on the Irish property market.
## Interview: navigating Ireland’s Booming Housing Market
**ARCHYDE**
**Published:** January 4, 2025
**Interviewer:** Today, we’re speaking with Marian Finnegan, Managing Director of leading Irish estate agent Sherry FitzGerald, to unpack the dramatic rise in Irish house prices and explore potential solutions to the enduring housing crisis.
**Finnegan:** It’s a pleasure to be here.
**Interviewer:** Ms. Finnegan, Sherry FitzGerald recently forecast a potential 10% surge in second-hand home prices for 2025. This follows a notable trend of increasing prices over the past years. What are the driving forces behind this continued growth?
**Finnegan:** The simple answer is persistent and severe housing supply shortages. Demand continues to outstrip supply across both urban and rural areas, leading to intense competition among buyers.
**Interviewer:** The Central Statistics Office reported a 9.7% rise in the national residential property price index by the end of 2024. With Dublin’s average home price now exceeding €600,000, affordability is becoming a major concern. How worried are you about overvaluation and the implications for potential homeowners?
**Finnegan:** it is a legitimate concern. The ESRI has flagged potential overvaluation, estimated at around 10%. This coupled with rising mortgage debt levels adds to the pressure felt by many hoping to enter the market.
**Interviewer:** Certainly, the economic climate affects affordability. Looking at construction, we’ve seen projections suggesting the approximately 32,000 new homes completed by the end of 2024 fall significantly short of targets.
**finnegan:** This underscores the urgency of the situation. While these projections may rise in the coming years, the Central Bank estimates a need close to 52,000 new dwellings annually to truly tackle the shortage.
**Interviewer:** What steps do you think the recently formed government should prioritize to alleviate this crisis?
**Finnegan:** Housing must be at the forefront of their agenda. Extending the Help-to-Buy scheme, which provides vital tax assistance to first-time buyers, is crucial. Additionally, attracting private equity investments into the Irish market would inject much needed capital for progress.
**Interviewer:** Looking ahead, do you see any potential glimmers of hope for those seeking to enter the housing market?
**Finnegan:** Recent data shows a surge in housing commencements, indicating a potential for increased delivery of new homes in the coming years.However, a long-term commitment to addressing supply is essential.
**Interviewer:** Ms. Finnegan, thank you for your insightful viewpoint on this crucial issue.
**Finnegan:** My pleasure.
**Interviewer:** Stay tuned for further coverage on this evolving story.
