According to international property consultant JLL, Dublin's housing market has enjoyed a 7 percent price gain in 2021.
Hannah Dwyer, Head of Research at JLL Ireland says, "We are forecasting continued strong growth in house prices for 2021 of 7%, as the economy opens and recovery gains traction. Our forecasts are derived by using key indicators in availability, affordability and sentiment.
"Availability remains an issue, with a decline in the number of properties for sale and the completions of houses below required levels creating a falling stock-to-sales ratio. In addition, interest rates have fallen, and labor market conditions remain steady, which will have a positive effect on the ability of people to purchase houses and is likely to support price growth.
"We are forecasting continued growth of 5% in 2022 due to the persistence of tight supply conditions. A looser housing supply and a normalization of economic conditions will ease the supply-demand imbalance in 2023, and therefore we expect price growth will moderate to a more sustainable pace of 3% in that year."
Hannah further added, "2020 saw a turning point in rents due to the COVID-19 pandemic. We expect rental price growth to remain steady in 2021, with no change in rents. The availability of rental stock affects rental prices, although the relationship between prices and stock is much more complex than this. There have been increases in stock levels within Dublin sub-markets, particularly the city centre, with an increase in renters returning to family homes during the pandemic.
"That is likely to cause a price decrease in Dublin city centre for rents in 2021, but with suburban rents showing minor increases, Dublin rents overall will remain unchanged for the year. There will be a gradual move back to urban locations from 2022 onwards. Affordability also plays a key part for the rental market, and we may start to see a two-tier market emerge between different price points. 'Affordable rents' (<€2,000) may rise, but higher rental levels are likely to remain static. Rental growth will start to pick up again in 2022 and 2023, although moderately at 1.5% and 2.5% respectively", concluded Dwyer.