Residential Market Update Q3 2023

The Dublin residential market continues to evolve. Pre-summer 2022, it was very much a sellers’ market with built-up pandemic-related savings and low-interest rates fuelling exceptionally strong demand. Global geopolitical and macroeconomic factors, primarily due to the war in Ukraine, led to less disposable income as the cost of living and interest rates rose. These factors resulted in a less frenzied property market and a balancing of power between buyers and sellers. This continued up until mid-summer 2023 but in the last few weeks of Q3, the market became somewhat flat. Potential purchasers were more cautious as the 10 ECB rate hikes in a year impacted affordability and repayment capacity for a large part of the market (lower to mid-priced homes) where borrowing is most prevalent. At the upper end, cash purchasers dominate, and it is of less relevance. However, any changes to interest rates and the wider macroeconomic situation affect market sentiment across the board. Despite this, demand remains strong, and the significant lack of homes for sale means that transactions are continuing and prices are generally stable. While not all individual experiences fully reflect the broader Irish economic situation, it is encouraging that Irish household savings remain at record highs and grew further in Q3. It is also positive that there is still full employment with most economic sectors struggling to recruit talent. In the property market, house hunters continue to have requirements and viewing numbers remain good if asking prices are realistic. However, a more cautious buyer approach can be seen in the generally slow progression from viewing to making an initial offer. Some potential buyers are adopting a wait-and-see approach; perhaps focused on the macroeconomic situation and/or potentially better value on offer in a few months, but also with constrained options due to lack of supply.

 

Download the full Residential Market Update Q3 2023 

By Kevin Kavanagh
8th October 2023
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