According to a recent report from the SCSI (Society of Chartered Surveyors Ireland), nationally during 2015 there was an average increase of 12% in rents, and are now outperforming property appreciation across all regions. Property values also increased by an average of 8.8% nationally in the same year.
The SCSI now expect the price of an average 3-bed semi-detached property to increase by between 4-8% in 2016 – this would be dependent on location.
In Munster and Connacht/Ulster, values are estimated to have increased by 10.4% and 8.8% respectively, while in Leinster (excl Dublin) they increased by 9.4%. Rents increased in the capital by an average of approximately 12.1%, in Leinster by 14.2%, in Munster by 11.1% and in Connacht/Ulster by 9.4%.
“It’s clear more needs to be done in terms of tackling construction costs”
According to respondents, the supply of housing will continue to be an issue in 2016. 80% of respondents believe the supply of new homes will be less than demand in Dublin while in Munster the figure is 69%.
John O’Sullivan, chairman of the SCSI Residential Agency Professional Group, commented, “There were some welcome policy developments in 2015, however as we look forward to the General Election and the 32nd Dail, it is imperative that the present focus on housing is maintained.
“According to the ESRI we need to build up to 25,000 units a year up to 2029. It’s estimated the completions figure for 2015 will be around half this at 12,500.
“It’s clear more needs to be done in terms of tackling construction costs, the availability of development finance and speeding up the planning process. The setting up of a National Housing Authority to co-ordinate the delivery of housing is vitally important to address our chronic housing shortage.”