Residential Market Outlook 2023
Although the residential market was characterised by buyer frustration at the start of 2022 in Dublin, this pivoted during the summer months with the 10% to 13% annual growth rate in Dublin prices registered since mid-2021 easing, with purchasers becoming more price sensitive. This was due to the geopolitical and macroeconomic factors, most notably the war in Ukraine, rapid rises in the cost of living (particularly energy), interest rate hikes for the first time since 2011 and less disposable income.
2023 will be a more challenging year for the market with the timing of sales being very important for success. Lisney predicts that buyer price sensitivity will remain in place for at least six months of the year with no increases in price. Market stability during the second half of the year will greatly depend on how supply evolves and on wider political and economic issues both in Ireland and globally.
At the upper end of the market (+1m), there is still a large number of sales occurring on and off market. Dublin supply was at an all time low in January 2022 but steadily increased over the year, partially due to investors selling buy-to-let properties.
Cash purchases will continue to dominate country home sales. International buyers will be the most active in the Irish country homes market this year, especially homes on the higher price scale. Those from overseas will be a mix of Irish abroad but also citizens of other countries seeking full-time or part-time holiday homes in Ireland. The majority will be from the US but European countries will also feature strongly. UK demand, with the exception of expats, will continue to feature less than was the case pre-Brexit. New supply will be slow in the early months of 2023, but by spring, the number of county homes on the market will grow.
A full breakdown of the key sectors contained in the Lisney Outlook 2023 report can be accessed here: https://lisney.com/outlook-2023/