Being close to public transport boosts property prices by 6%

Daft.ie finds that people will spend more to be near rail stations...

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The value of a home in Dublin increases by an average of 6% if it is situated next to a Dart or Luas stop, according to Daft.ie's new rail-line study.

The research, based on almost one million listings over the past decade, also found that rental prices rise 2% on average.

Economist Ronan Lyons, the author of the report, told Newstalk Breakfast:

"That's not surprising. We would expect to see a benefit for properties that are very close to rail facilities. I guess what it does is it puts some numbers on some common sense intuition."

The effects, however, differ by rail line. While there is a premium for homes near Luas Green stations, those near Luas Red stops come at a discount.

For example, the value of homes in close proximity to the recently-extended Luas stop in Saggart has fallen by 5%.

On the flipside of that, there has been a significant rise in asking prices for homes in areas close to the extended Luas Green Line stop at Cherrywood. Prices are between 10% and 15% higher than before its construction, with rents between 5% and 7% higher.

Daft.ie

Lyons said the prices reflected a balance between two things:

"You have access and security, or congestion as you might call it...

"The same actually happens often with schools. Because houses that are too close to schools have lots and lots of car-parking for good chunks of the year.

"So it's clear from the market anyway, in the Luas Red Line, that those security and congestion factors seem to weigh more on people's minds when they're buying."

Lyons also noted that "light rail has a bigger premium than commuter or Dart."

The most expensive Dart stop was Sandymount, with an average asking price of €788,000.

The most expensive Luas Green line stop was Cowper, with houses going for approximately €679,000.

The priciest Luas Red Line stop was Spencer Dock, with an average cost of €663,000 for a home. 

Daft.ie