House prices are expected to rise by up to 6% as more people prefer work from home
DUBLIN: As people start working from home due to the COVID-19 pandemic, there is a growing interest in homes across Ireland. Therefore, property prices are forecast to rise by up to 6% this year.
The number of people working from home has increased over the last few months. Moreover, it is expected that many more people will move on to the concept of work from home.
The Society of Chartered Surveyors Ireland (SCSI) 2021 Annual Review was released a couple of days ago. Two of the three agents at SCSI had earlier predicted that property prices would rise across the country in the next 12 months.
SCSI vice president, TJ Cronin said: “Sixty-two percent of the chartered agents and auctioneers who are predicting prices will rise, say it is because of the lack of supply of new and second-hand homes, while 33pc say economic performance and the impact of Covid-19 on output will be the key drivers.”
“We can see that the transition to working from home has led to a re-ordering of priorities and is driving interest in larger properties in regional locations with good broadband and lots of amenities, as well as holiday homes in secondary locations,” Mr. Cronin added.
He said the trend from urban areas is also reflected in the survey’s price forecasts. Mr. Cronin said the agents predicted the lowest growth in Dublin and highest in Connacht/Ulster.
Agents have forecast a 3% increase in Dublin, which currently has the highest prices. At the same time, the lowest priced Connacht and Ulster are forecast to increase by 6%. The Leinster region is set to see a 4% rise in prices, while Munster is forecast to rise 5%.
The Residential Tenancies Board figures show that the lowest national annual growth rate for rent since the end of 2012 was last year. This means that COVID-19 has also hit the rental sector hard.
Housing supply remains a major issue, and the report indicates that it will take more than a decade to deliver.
The sector is projected to produce more than 60,000 units per year by 2031. This is more than three times the current output. Mr. Cronin said this supply shortfall could push sales. He also commented that the COVID-19 Pandemic has affected some buyers more than others.
Kindly click the link below to join Whatsapp group chat to get important news and breaking news from Irish Samachar
Comments are closed.