The Top 5 Trends in Ireland Real Estate Market in 2023
The Dublin real estate market has been experiencing some changes in the past year, as the effects of the pandemic, the economic recovery, and the government policies have influenced the supply and demand of properties in the areas we are selling in. Here are some of the key trends that were expected to shape the market in 2023 and let see if any of these predictions came true.
1. Price Inflation and Demand
According to the Quarter 3 Myhome.ie report,
- National annual asking price inflation is running at 4.1%
- The period of falling house prices – seen earlier this year – has come to an end
- Demand remains strong despite ECB rate hikes
- Supply shortage is a major concern and is leading to significant negative societal consequences
- Ireland stands in stark contrast to UK and US, which have both seen price declines
- Lack of supply threatens further deterioration in affordability over next two years as prices fall elsewhere
- The forecast of annual residential property price inflation of 1.5% is unchanged
We certainly see this materialise in the areas we are currently selling and we are experiencing overwhelming demand levels and a falling supply.
2. ESG and Sustainability
Environmental, social, and governance (ESG) factors are becoming more important for both buyers and sellers of properties in Dublin, as they seek to reduce their carbon footprint and improve their sustainability performance. ESG criteria are also influencing the lending decisions of banks and investors, who are increasingly demanding higher standards of energy efficiency, green building certification, and social impact from property developers and owners. ESG remained high across the real estate industry in 2023, as more regulations and incentives were introduced to support the transition to a low-carbon economy.
3. Housing Supply and Affordability
Housing supply and affordability remain major challenges for the Dublin real estate market, as the demand for housing continues to outstrip the available stock. plan. However, these initiatives are facing some obstacles, such as constrained industry capacity, planning delays, rising costs, and legal challenges. For private sector developers, planning risk in respect of high-density development projects is giving rise to considerable uncertainty. The market will need more innovative solutions to increase the supply of affordable and social housing in 2023. So far these schemes are “Behind the Curve” and are too slow in taking the necessary action and are not moving forward quickly enough in our estimation.
4. Commercial Sector Recovery
The commercial sector of the Dublin real estate market has been hit hard by the pandemic, as many businesses have shifted to remote working and online shopping. However, there are signs of recovery in some segments of the market, such as industrial, logistics, data centres, and life sciences. These segments have benefited from the increased demand for e-commerce, cloud computing, and healthcare services during the pandemic. The office sector is also expected to rebound, as more businesses adopt a hybrid model of working that combines remote and on-site activities. The retail sector will face more challenges, as consumer behaviour and preferences have changed significantly during the pandemic.
5. Digital Transformation
The Dublin real estate market will continue to embrace digital transformation in 2023, as technology plays a key role in enhancing the efficiency, transparency, and resilience of the industry. Digital tools such as artificial intelligence, blockchain, big data analytics, and smart contracts will enable more data-driven decision-making, faster transactions, lower costs, and better customer experience. Technology will also enable more flexible and adaptive use of space, as well as more sustainable and healthy buildings. The digital transformation of the real estate industry will require more investment in innovation, skills development, and cybersecurity.
The market faces some challenges and uncertainties, but there are also some opportunities and innovations. The key to success is to adapt to the changing environment and meet the evolving needs of customers and stakeholders. We as a company here at Team Lorraine Mulligan love change and embrace every bit of technology available to us in order to best serve our customers and set ourselves apart and ahead of our competitors.