While property prices are expected to rise further, first-time buyers are often stuck paying more rent than they would on a mortgage.
New data from the Institute of Professional Auctioneers and Valuers (IPAV) estimates that average residential property prices will rise by 5% in 2024.
Speaking to The Anton Savage Show, IPAV Chief Executive Pat Davitt said there are no signs of price decreases in the current housing market.
“I think at the moment, it's more likely a regional problem,” he said.
“We're looking at mostly a Dublin market that’s settled, prices not moving greatly, but we're looking at a catch up for regional areas.
“That catch up is what's going to drive the property market up this year.”
Combined with increasing rents, there is little hope for first-time buyers, according to Mr Davitt.
“For first-time buyers, it’s even worse,” he said.
“To get into that situation where you're able to borrow enough money, even if you're earning sort of the average wage of €60,000, it's just not possible.
“And with the funds that they have, even if they can prove that they are renting and spending a lot more on rent than the property mortgage is going to cost them, they still can't borrow the money to buy that property.”
Hybrid working and property prices
Businessman and broadcaster Gavan Duffy noted the rising price of properties across Ireland shows “hybrid working is here to stay”.
“The western seaboard, always lagging behind in price increases, is suddenly top of the league,” he said.
“You have 9.5% growth in the last 12 months in Donegal, you have Leitrim popping up 2% to 10.7%... people are now voting with their feet as regards their work.
“Why would you choose to live in Dublin, even if your office is based in Dublin, when you could work from home in Longford and get much better value?”
Commercial spaces
Along with this driving property prices up in Ireland, Mr Duffy pointed out this has worrying implications for commercial properties in Dublin.
“Are we going to have a second major financial fallout?” he said.
On average, it now costs €335,520 to buy a home, up by more than a quarter since the beginning of the pandemic.
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