The Owen Reilly Report 2023

We have released our annual report on the Dublin residential market based on data from our transactions in 2022. It was very much a year of two halves as events again took over with Russia invading Ukraine causing an energy crisis and inflation to surge.

The first six months were very much a seller’s market with low supply, low interest rates, a strong local economy underpinned by a booming technology sector, and pent-up demand caused by the pandemic. In April, when the supply of properties for sale reached a record low, our average selling prices were 7.6% above asking and over 80% of our properties were sold above asking. Demand was strongest for family homes in turn-key condition, some of which were selling 20% above asking in a matter of weeks.

In the second half of 2022 price inflation cooled due to a significant increase in the supply of properties for sale with many sellers attracted by the price their neighbours achieved, interest rates started increasing, sentiment was somewhat negatively impacted by economic uncertainty and there were job losses in the technology sector with fears of a major correction.

Last year on average property prices in our core markets were 5% higher than a year ago. Our average selling price was €643,891 or €645 per sq. ft. Average selling prices were 4.6% above asking prices and 68% of our properties were agreed above asking.

In the rental market, the crisis continues, with the supply of rental accommodation coming nowhere near meeting demand and no sign it will any time soon. One huge challenge for the rental market is the reduced demand we are seeing from investors. They accounted for 25% of our buyers in 2022 compared to 31% in 2021 and 54% in 2018. Given more than half of our sellers were landlords exiting the market and most of our buyers were owner occupiers, the amount of available rental stock continues to deplete as it has for the last five years deepening the crisis. The reasons there is less demand from investors are the same many are selling up; rent control, taxation, regulation and concerns more intervention from the state is on the way with no thought for the unintended consequences. Inflation is running much higher than the 2% landlords can increase rents, reducing landlord returns.

Our average monthly rent was €2,606, a 20% increase on 2021. Open market rental inflation for the year was +16%, a depressing statistic and confirms the state’s complete failure in the housing sector.

Given the uncertainty, the prospects for the selling market in Dublin in 2023 are very unclear despite strong underlying demand and fundamentals. As always, different property types and price ranges will perform very differently.

Check out the full report for more details.

Key stats from our 2022 data:

  • On average prices were 5% higher across our keys market than a year ago.
  • Our average selling price was €643,891/€645 per sq. ft.
  • Average selling prices were 4.6% over asking
  • 68% of our properties were sold above the asking price.
  • 49% of our buyers required no mortgage funding.
  • Dublin 6 had the highest average selling price.
  • Only 25% of our buyers were investors, 55% of our sellers were landlords exiting.
  • 63% of our tenants worked in the technology sector compared to 43% in 2021.
  • Only 16% of our tenants were Irish.