Dublin Property: 2017 Saw A 77% Increase In Housebuilding
Goodbody Stockbrokers’ most recent report on housebuilding around Ireland makes a good headline, after all a 77% increase in house completions across the country anything is not to be sniffed at.
And we need all the housing we can get.
The report does tease out a couple of issues however:
Although 8,659 houses were built from January to November around the country, that is still well short of the 30,000 (plus) units that we need to meet natural demand.
It is also at contrast to the official Government’s official figures, which state a figure of 17,309 for that period. According to Goodbody, the (100%) difference is because the Government use electricity connections as a base (which are not always for new builds) whereas their own figures as based on BER certificates issued.
The Greater Dublin area (including Kildare Meath and Wicklow) dominated the building – 73% of the 8,659 builds were in that region according to Goodbody, while Government figures had that at 47%.
Dublin Rentals Properties: Are The Rent Caps Working?
Not if you’re a renting in Dublin City where rents increased by 15.5% in the year ending Q3/17 (Daft.ie Report), the figures for the rest of Dublin varied by 11-12%.
Recent legislation on tenancies and rent controls has made being a landlord more complicated and the Residential Tenancies Board(PRTB) has issued very helpful newsletters for both tenants and landlords.
There are legitimate exemptions and loopholes in the legislation that are being exploited and some landlords are – wittingly or unwittingly – issuing rent reviews outside of the legislation.
And there have been recent cases where landlords found in breach have been ordered to pay damages of up to €20,000.
Ultimately though the problem is all about lack of supply – Ronan Lyons, in the above report, estimated that “Dublin alone needs an apartment block of about 200 rental units to open every week from now until the 2080s”.
That is a very sobering thought, as is the thought that Ireland is now moving from a low 65% urbanisation figure to 85% over the next 20-30 years. The Greater Dublin Area will of course bear the brunt of that and it is easy to see the pressure that will make on infrastructure.