The Irish property investment market registered a market turnover of €3bn in 2020 despite the global pandemic, according to new figures released today by Lisney, Ireland’s largest independently-owned multi-disciplinary property advisory company.
While this was half the previous years’ record-breaking €6bn, supply was more limited from April onwards as several potential sales processes were put on hold.
As was the case last year, Lisney say properties in turnkey condition will be most sought after and are likely to have several potential purchasers bidding on them, while properties requiring work will need to be priced accordingly to attract interest.
For 2021, Lisney predict that the first and second half of the year will be different. In the short-term, supply will remain the key issue, and combined with pent-up demand and good market sentiment, prices will likely hold firm. As the year progresses and a vaccine is hopefully rolled out in stages, Lisney say vendors will become more confident. Those holding off selling will move to put their properties on the market, but it will take time for stock levels to build up.
Lisney predict purchasers will remain sensitive to asking prices throughout 2021. For vendors, properties quoting realistic asking prices from the start of the sales process will garner the greatest attention.
Likewise, Lisney say damage will be done to purchaser interest in homes quoting over-priced figures. Any change in Dublin residential prices in 2021, positive or negative, will be linked to the economy, employment and consumer confidence.
Lisney say there will be continued demand from expats, mainly returning from London, the Middle East and China. For these, the pandemic has prompted a lifestyle change, particularly if they have parents and family in Ireland, and if they have children of school-going age. While a return was always on the agenda for most, COVID-19 has accelerated the decision. In the second half of 2020,
Lisney found that demand from this cohort was focused on the upper-end of the market and not reliant on mortgage finance. Lisney believe this trend will continue, particularly those returning from the UK due to Brexit.
Commenting on the research, Lisney Research Director, Aoife Brennan says, "2020 was a strange and surprising year in the property market. Across all sectors, it started strongly but as COVID-19 became much more serious in Ireland and the first lockdown occurred, the various sectors performed in different ways. Most thought residential prices would fall but with significant supply shortages, prices remained stable, and as it will take time for available stock to build-up, prices will continue to hold up in the coming months."