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Irish Times
5 days ago
- Business
- Irish Times
Average price of a second-hand home in Dublin pushes past €600,000 barrier
The average price of a second-hand home in Dublin has reached €600,047, according to a new report from estate agent DNG . Nationally, the average price of a home increased to €313,453. The average price of second-hand properties in Ireland, excluding Dublin, rose 4.7 per cent in the first half of the year. This compared to 3 per cent in the capital. In the past 12 months, Dublin has seen a marginally slower rate of house price inflation than the rest of the country, as measured by the DNG national price gauge. While Dublin saw an increase in the average second-hand home price of 8 per cent during the period, the average price across the other counties rose by 8.7 per cent. This is broadly in line with Residential Property Price Index figures released in the past week, which found that in the year to April 2025, property prices in Dublin rose by 6.2 per cent and prices outside Dublin were up by 8.6 per cent. READ MORE However, the second-quarter report on home prices found that listed home prices were, on average, 12.3 per cent higher in the second quarter of the year than in the same period in 2024. Apartments in Dublin experienced a 7 per cent increase in average price in the 12 months to June 2025. This rate, however, was significantly faster than the same period one year previously, during which apartment prices rose by 4.2 per cent. Outside of Dublin, house prices were at their highest in the mid-east of the country, with an average house price in June of €439,289. This is an increase of 6.7 per cent in the past year and 4.1 per cent in the first half of 2025. The southeast saw the average price of a house rise 8.6 per cent in annual terms and 5.1 per cent in the first six months of 2025, making it the third highest region at €357,660. The highest regional house-price growth was in the mid-west, which saw prices grow 10.4 per cent in the past year. However, with house prices there standing at €291,160, it remains below the national average. The region with the lowest average housing price is the border region, which rose slightly by 3.7 per cent to €242,426. DNG director of research, Paul Murgatroyd, said the housing market 'continues to be characterised by an excess of demand over supply', noting that housing prices 'continue to climb as a result'. He added: 'That said, however, there has been a welcome increase in the number of homes coming for sale in the Dublin second-hand market in recent months. While this has served to dampen the rate of price growth somewhat, demand has remained robust, particularly from first-time buyers keen to get on the property ladder.' [ What will €299,000 buy in counties Clare and Wexford? Opens in new window ] First-time buyers made up the majority of people purchasing second-hand properties through DNG, accounting for 54 per cent of buyers in the first six months of the year. An additional 19 per cent of home buyers were existing homeowners trading up in the market, with just 5 per cent buying in order to trade down. Keith Lowe, chief executive of DNG, noted there were '12 per cent more homes being advertised for sale' in Dublin in the first half of 2025 compared with the same period in 2024, which he said 'will be good news for those looking to buy'. However, he added it was 'not such positive news for tenants who are likely to see less rental stock available and higher rents'.
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Business Standard
5 days ago
- Business
- Business Standard
Dream home is hard to get: 109 yrs of savings needed to buy one in Mumbai
The real estate market is booming but homes in India's largest cities are becoming unaffordable, even for the wealthy, according to two major reports. In Mumbai and Gurugram, the top 5 per cent in income class have to save money for decades to buy a standard home, according to the 'Trend and Progress of Housing in India' report by the National Housing Bank (NHB) and the Household Consumption Expenditure Survey Factsheet' of the National Sample Survey Office (NSSO). NHB's Residential Property Price Index (RPPI) tracks the cost of a 110 square metre (1,184 square foot) house in various cities. NSSO's Household Consumption Expenditure Survey (HCES) 2022-23 provides income data for urban households, including the richest 5 per cent. Assuming a 30.7 per cent savings rate, as reported in 'India Gross Savings Rate', a report by CEIC Data, Business Standard calculated how long it takes to afford a home. Here's what the data shows for key cities: City House Price (in lakh) Annual Savings (in lakh) Years to Buy Mumbai 354 10.7 109 Gurugram 226 11.7 64 Bhubaneswar 120 2.3 53 Patna 81 6 45 Kolkata 97 8.2 39 Ahmedabad 94 8.1 38 Chennai 113 10.2 37 Bengaluru 115 10.4 36 Delhi 135 12.7 35 Lucknow 79 7.9 33 Dehradun 70 9.4 30 Ranchi 68 7.7 29 Guwahati 73 8.3 27 Thiruvananthapuram 87 10.9 26 Bhopal 57 7.2 26 Vizag 67 8.7 26 Raipur 50 6.5 25 Hyderabad 89 12.5 23 Ludhiana 55 7.9 23 Jaipur 45 9.3 16 Chandigarh 78 17.4 15 Mumbai is the least affordable city, requiring 109 years of savings for a Rs 3.54 crore home, even for those earning Rs 10.7 lakh annually. Gurugram follows, with a Rs 2.26 crore home requiring 64 years at Rs 11.7 lakh savings per year. Chandigarh is relatively affordable: a home costing Rs 78 lakh will take 15 years to buy if one has Rs 17.4 lakh in annual savings. Mumbai and Gurugram Housing demand in Mumbai outstrips supply. A 110 square metre home, which will be a modest 2BHK apartment, costs Rs 3.54 crore. Even the top 5 per cent, those with an estimated monthly per capita expenditure of Rs 22,352 (according to NSSO data), will struggle. Gurugram, a corporate hub near Delhi, is growing rapidly and the same-sized home costs Rs 2.26 crore. These cities highlight a broader trend: job-rich urban centers are pricing out even high earners. What does this mean for your finances? For middle class families, owning a home in Mumbai or Gurugram is difficult. Young professionals starting their careers face an even steeper climb. Planning to buy a home reshapes personal finance in several ways: Many may need to settle for smaller homes or live on rent for long. Loan dependence: Taking a home loan means high interest rates and long tenures increase financial strain. The NHB notes that housing loans reached Rs 33.53 trillion by September 2024, up 14 per cent year-on-year. More affordable cities like Chandigarh, Jaipur (16 years to repay a loan), or Hyderabad (23 years) may attract talent, but job opportunities often tie people to expensive hubs. This situation also affects long-term goals. Saving for a home can crowd out other priorities like retirement or education, forcing families to rethink their budgets. Broader implications The affordability gap isn't just a personal finance issue; it's a societal one. High prices in cities like Mumbai and Gurugram could slow urban economic growth, as workers struggle to settle. The NHB report highlights regional disparities in housing finance: southern states (35 per cent) and western states (30 per cent) dominate loan distribution, while north-eastern states get just 0.68 per cent. This uneven access worsens the crisis in high-cost areas. Government schemes like Pradhan Mantri Awas Yojana (PMAY) aim to boost affordable housing, but their impact in premium cities is limited. The NHB's RESIDEX index shows a 6.8 per cent price rise in Q3 2024, suggesting costs will keep climbing without major policy shifts. Looking ahead For individuals, navigating this crisis requires smart planning. Start saving early, even if it's a small amount. Explore suburbs or tier-2 cities where prices are lower. If loans are unavoidable, compare rates and opt for shorter tenures to minimize interest. Government subsidies under PMAY can help, especially for first-time buyers.
Irish Examiner
18-06-2025
- Business
- Irish Examiner
US buyers showing increased interest in Irish homes
THE appetite for € 1m homes in Cork is heating up heading into the summer months , with demand split between city properties and lifestyle driven coastal and country homes, according to new data f rom Lisney /Sotheby International Realty . The data, contained in Lisney/Sotheby's 2025 spring/summer residential market review, also shows a 10.4% jump in house prices in Cork and Kerry in the 12 months to February 2025. The price rise was less dramatic in Dublin where the Residential Property Price Index recorded a 7.7% increase in the 12 months to February 2025. In both cities, where housing shortages are acute, the number of homes sold fell. In Dublin, the figure was down 3.4% compared to the previous 12 months, with approximately 12,600 units sold. The drop was steeper in Cork, where the sale of c 3,800 homes represented a 10.8% decrease compared to the previous 12 months. Both cities also recorded c15% fewer second hand properties for sale at the end of April, compared to six months earlier. New home figures were up in Cork by 16% compared to a year previous, and down by 9% in Dublin. Nine in 10 new homes in Cork were houses compared to just 40% in Dublin. Over the 12 months to Q1 2025, almost 44,000 mortgages were drawn down, with first time buyers accounting for 61% of all drawdowns. The 'mid-price' range remains the most competitive market in Cork 'with properties often selling in excess of the asking price due to strong local demand for well-located, energy-efficient, ready for occupation homes', said Lisney Cork office divisional director Trevor O'Sullivan. Meanwhile, the upper end of the market, above €1m, was 'gaining momentum heading into the summer season', Mr O'Sullivan said. Interest from international buyers 'particularly relocating Americans, has been strong, with many seeking period or country homes'. While the announcement of new US trade tariffs 'initially caused a dip in viewings', confidence had been restored by the introduction of a tariff 'holding period'. 'Activity has since rebounded,' Mr O'Sullivan said, adding that 'direct contact from the US buyers relocating to Ireland is now a regular feature'. The country homes/castles sector continued to attract international buyers, 'particularly cash purchasers making lifestyle-driven decisions', said Lisney's head of research, senior director Aoife Brennan. These included both returning Irish 'often individuals who emigrated in the 1980s and built successful careers in the US, UK or mainland Europe', as well as overseas nationals seeking a second home. 'Ireland has become increasingly attractive to this cohort, particularly in comparison to traditional locations such as France, Spain, Portugal and Italy where rising summer temperatures now influence purchase decisions.' 'Ms Brennan said fully renovated homes in good condition attract the strongest interest, 'particularly among international purchasers who are less inclined to take on refurbishment projects or manage contractors from abroad'. As a result, they attract higher prices than those needing significant work. In Dublin, demand for family homes priced between €1.5- €2m in desirable neighbourhoods remains strong, although Ms Brennan said buyers are more cautious than a year ago, 'driven by global instability'. That same instability was making some sellers nervous and resulting in supply still falling short of demand. Moreover the delivery of new homes was being impacted by planning and infrastructural delays and viability challenges. Nonetheless, the new homes market 'remained exceptionally busy in the first part of 2025, with strong buyer sentiment continuing to outpace demand. First time buyers trying to exit the rental market or move out of family homes were particularly active. In Cork, 2025 got off to a 'slow start' but sentiment in the residential market is positive 'pointing to a busy second half of the year', Mr O'Sullivan said.
IOL News
13-06-2025
- Business
- IOL News
Understanding the 5. 2 percent rise in South Africa's residential property price inflation for January 2025
Stats SA reports a modest increase in residential property price inflation across Mzansi. Image: Simphiwe Mbokazi The annual national residential property price inflation was 5.2% in January 2025, an increase from a revised 5.1% in December 2024. This is according to the Residential Property Price Index January 2025, released by Statistics South Africa (StatsSA) on Thursday. The data showed that the residential property price index (RPPI) increased by 0.4% month-on-month in January 2025. 'The main contributors to the 5.2% annual national inflation rate were Western Cape (8.7% and contributing 3.3 percentage points) and Gauteng (2.3% and contributing 0.9 of a percentage point). The RPPI for all metropolitan areas increased by 5.0% between January last year and January this year. The main contributors to the 5.0% annual inflation rate for metropolitan areas were City of Cape Town (8.5% and contributing 3.1 percentage points) and City of Johannesburg (2.3% and contributing 0.5 of a percentage point). The annual national residential property price inflation is generally a positive indicator for the local property market, says Dr Farai Nyika, an academic at the Management College of Southern Africa(MANCOSA). He said both property developers and existing homeowners depend on, and benefit from, sustained price inflation to realise returns on their long-term investments. However, he said that one significant consequence of rising property values is that municipalities periodically revalue properties, which often results in higher property rates for owners. 'For prospective property investors, it is important to note that real returns are only achieved when property price inflation exceeds the annual consumer inflation rate, inclusive of all associated costs (such as rates, taxes, maintenance, and transaction fees). Rising property prices also stimulate demand in related industries, including hardware suppliers, cement producers, and manufacturers of construction materials. This, in turn, supports job retention and the creation of new employment opportunities, which is particularly important in the context of South Africa's challenging economic climate,' Nyika said. The academic said that conversely, Cape Town is increasingly becoming unaffordable for many first-time buyers, placing them at risk of becoming perpetual renters. He said as people tend to 'vote with their feet', the city - despite being an attractive and desirable destination - continues to reinforce generational divisions along the lines of income and property affordability. The RPPI for properties sold for the first time increased by 6.0% between January 2024 and January 2025. The index increased by 0.3% month-on-month in January 2025. The RPPI for resold properties increased by 5.9% between January 2024 and January 2025. The index increased by 0.4% month-on-month in January 2025. The RPPI for sectional title properties increased by 3.1% between January 2024 and January 2025. The index increased by 0.4% month-on-month in January 2025. The RPPI for freehold properties increased by 7.1% between January 2024 and January 2025. The index increased by 0.5% month-on-month in January 2025. In a property note released this week, FNB said that looking ahead, the recent series of interest rate cuts is expected to mildly strengthen market conditions in 2025 compared to 2024. However, the bank said that a strong and sustained recovery will depend on achieving significantly improved economic growth. FNB added that it forecasts modest improvement, with growth rising from 0.5% in 2024 to 1.1% in 2025, and reaching 1.9% by 2027. It said it also anticipates that interest rates will likely move sideways for a protracted period following one more expected 25-basis-point cuts in the second half of 2025. While this expected mild improvement in the economic and interest rate environment is welcome, FNB said it may not be sufficient to support sustained real (inflation-adjusted) growth in property income and capital values through the forecast period to 2027. Independent Media Property
The Irish Sun
21-05-2025
- Politics
- The Irish Sun
‘We need homes for people, not seasons', fumes Mayo Council official over ‘radical' boycott plot of holiday-house owners
A HOUSING official has defended his call for a boycott of holiday-home homeowners. Tom Gilligan, the director of services for housing and roads at Mayo County Council, believes the move could bring high numbers of vacant properties back into use to help combat the housing crisis. Advertisement 3 Gilligan stressed that holidaymakers are 'welcome to Mayo' Credit: Getty Images - Getty 3 Tom Gilligan, the director of services for housing and roads at Mayo County Council Credit: Collect With CSO figures revealing there are 5,987 holiday homes in Co And as he hit the headlines, defiant Gilligan stood by his proposal today, declaring: "I do not regret the email. We need homes for people, not just for seasons." Gilligan explained: 'We are in the middle of a The Mayo housing official was asked if he regretted his use of the word 'boycott' in the email he sent to members of the local authority's Housing Strategic Policy Committee. Advertisement READ MORE IN MONEY But Gilligan insisted that he did not. He said: 'The word boycott has been around since the 19th century. It originated in Mayo. Governments have used it, individuals have used it to try and bring pressure in order to get things done. 'Nothing is off the table and we are looking at a number of options in relation to Mayo. "We're looking at the whole idea in relation to a holiday home tax, we're looking in relation to compulsory purchase orders.' Advertisement MOST READ ON THE IRISH SUN Mr Gilligan outlined why he felt compelled to send the email to members of the council's Housing Strategic Policy Committee which is made up of 11 members, seven elected councillors and four non-elected members. Sinn Fein leader Mary Lou McDonald slams Government over housing crisis He said: 'So I emailed them a proposal on Sunday night in relation to the whole idea of dealing with holiday homes and vacant holiday homes. 'According to the 2022 census, there are 5,987 holiday homes in Mayo. And in the middle of a housing crisis, we need homes for people, not just for seasons. 'So the objective around this proposed boycott is to highlight the impact of underused housing stock on local communities, encourage policy reform and taxation measures on vacant second homes. Advertisement HOUSE PRICES SOAR "And also as well to push holiday homeowners to either return properties for sale to the rental market or to the long-term rental market.' Gilligan maintained he is not trying to 'demonise' holiday home owners and stressed that people are 'welcome to Mayo'. Mayo County Council said the email was part of an 'internal discussion document in response to the SPC's request for a policy on this subject'. Meanwhile, property prices outside of Advertisement The national Residential Property Price Index has revealed that property prices in the capital rose by six per cent. The average price of a house in the 12 months leading up to March 2025 was €362,500. 3 Property prices outside of Dublin soared by 8.7 per cent in 2025 Credit: Alamy Stock Photo
