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Number of people moving to inner counties is rising; Economists believe working from home has an impact on housing market

DUBLIN: Although house prices continue to rise in Ireland, economists say work from home is bringing some changes to the market.

Property prices in the country rose 2.6% in January compared to the same month last year, according to the latest figures from the Central Statistics Office. According to the CSO report, this is the fastest increase since May 2019. It was 2.2% in the December period.

At the same time, the number of homebuyers expanding to other areas outside of Dublin is promising. The number of residential property transactions in Dublin has dropped dramatically. Meanwhile, the number of homebuyers in other counties is on the rise.

Thousands of people are moving from the Dublin area to the inner counties, most of whom are new permanent job seekers in Ireland.

A Kerala family who migrated to County Mayo told Irish Samachar News that not only the high house prices and rent in Dublin, but also the cultural change are motivating them to leave Dublin.

Goodbody economist Dermot O’Leary said the CSO figures show that work-from-home influences locational preferences. Dermot O’Leary said transactions in Dublin had fallen the most in the past three months. Deals were down 15% on an annual basis compared to a decrease of 2% on a national level. “Clearly, increasing prevalence of WFH has made it possible for many to live in these locations,” he said.

Findings in CSO Report

Property prices in Dublin rose 1.1%. This is the fourth increase on an annual basis since July 2019. Meanwhile, CSO says residential property prices in other parts of the country are up 4%.In Dublin, house prices rose 0.6% and apartments rose 3%.Outside Dublin, house prices rose 3.8%. At the same time, apartment prices rose 7.5%.

Residential property prices rose 88% from their lowest level nationally in 2013. At the same time, the CSO points out that prices are 15.7% lower than the 2007 high. The price of residential properties increased by 2% in the last three months of 2020 compared to the same period in 2019. The current ones are 0.2% higher.

But the number of houses sold is still down. There were 3,484 household purchases registered with Revenue in January. This is a decrease of 5.6% over the previous year.

The CSO says purchases fell in December as the number of registrations fell by 30.2%.81% of the purchases are existing dwellings. Of these, 33.4% were first-time buyers, 53.1% were movers and 13.5% were investors.

The average or mid-point price paid for a property is €261,000 nationally. Meanwhile, in Dublin it was €385,000. The postcode with the highest median price was A94 Blackrock in South County Dublin. The price here is €622,500.

Outside Dublin, it was A63 Greystones in Co Wicklow at €450,000. The least expensive median price was €80,000 in F45 Castlerea, Co Roscommon.

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