Interesting Statistics to consider when investing in Irish Property
Susan Salkeld
September 02, 2008
It is always worthwhile to know something about the history or demographics of a local housing market before considering making an investment. The Irish market is no different in this respect. In fact, one could argue that the rapidly changing face of the Irish economy demands that the investor/house-buyer or renter should pay heed to some interesting and fairly unique statistics related to Irish home life.
1. Population Density –
21% of the population of the island of Ireland lives in Dublin, making the city areas in particular very congested. Relatively speaking, house prices are the highest around Dublin, yet plot sizes are at their smallest, meaning that you get much less space for your money here compared to the remainder of the island. However, many Irish employers are based in Dublin, so some house-buyers may have little choice but to make a purchase close to Dublin city.
A further 18% of the population lives in the northern counties of Antrim and Down, influenced by the locations of some larger towns and the city of Belfast in particular. Whilst being busy areas, these large counties do not feel overly congested in the main. House prices generally give much better value for money than typical Dublin properties.
If we dismiss the influence of the inhabitants of the remaining larger Irish cities (e.g. Cork, Galway, Limerick), then the greater majority of this large island has typically less than 2% of the overall 6 million population living in each of the remaining 29, more rural, counties. If relative peace and tranquility in a countryside home setting are your desires, then about 85% of the total area of Ireland can still provide this much treasured commodity.
2. Housing Density –
Half of ireland´s 32 counties can boast having less than 15 houses per square kilometre on average. In five attractive counties (Kerry, Mayo, Donegal, Leitrim & Roscommon), statistics prove that there are 10 or less existing homes per km² on average, making most areas outside of the towns and larger villages appear comparatively deserted by most European density standards. County Fermanagh is Northern Ireland´s least densely developed county with 12 dwellings per km² overall.
By comparison, on average, there are 456 homes squeezed on to every km² in County Dublin.
3. New Houses – just 15 years ago, in 1993, there were 21,000 new homes built in the Republic of Ireland. Year on year since, the prospective buyer has had a greater choice of new houses and apartments to select from. Incredibly, last year saw the annual amount of new homes coming on to the Irish market rise to over 100,000.
4. Housing needs – whilst there has been a general increase in the size of new homes built, with 3 bedrooms being the typical sleeping provision offered, the number of people living in each house (on average) has fallen significantly. Forty years ago, 4 people sharing one home was the statistical norm. Nowadays, maybe influenced by the higher availability of apartments, the statisticians tell us that the average home occupancy is just 2.8 persons.
5. Types of Homes – 88% of Irish residents still prefer to live in traditional houses, rather than flats or apartments. Roughly half of these (43%) enjoy the benefits of living in a detached home. In rural locations, newer homes are commonly built on plot sizes of typically a half-acre, giving generous space for car parking, gardens, patios and children´s play areas.
6. Buy or Rent? – in 2006 the number of occupied dwelling places in Ireland had passed 2 million. In these homes, 20% of occupiers (that´s 1 in every 5) had chosen to rent their property rather than buy it outright. The more expensive city areas, and Dublin prices in particular, have greatly influenced these countrywide statistics. Also in 2006, the average weekly outlay for a privately rented Irish home had passed the €200 mark.
7. Occupancy & Vacancy Stats – the 2006 census in the Republic of Ireland concluded that 15% of homes existing at the time were unoccupied. That could easily translate into the amazing statistic that 300,000 houses, cottages or apartments remain vacant. As these figures come from a period before the current housing market slump, the investor or tenant should take note and not pay over the odds with so much availability to consider. Over 200,000 extra new homes have been built in Ireland in the last couple of years. The property vacancy rate has probably increased accordingly, contributing to the sudden but not unexpected end to the Irish housing boom.
8. Buy to Let – for the first time in many years, average Irish property rents began to fall in the first quarter of 2008. This is good news for prospective new tenants, but not so good news for landlords. When one considers the quantity of vacant existing property crying out for a paying occupier, there is little prospect of rents rising again in the short term.
1. Population Density –
21% of the population of the island of Ireland lives in Dublin, making the city areas in particular very congested. Relatively speaking, house prices are the highest around Dublin, yet plot sizes are at their smallest, meaning that you get much less space for your money here compared to the remainder of the island. However, many Irish employers are based in Dublin, so some house-buyers may have little choice but to make a purchase close to Dublin city.
A further 18% of the population lives in the northern counties of Antrim and Down, influenced by the locations of some larger towns and the city of Belfast in particular. Whilst being busy areas, these large counties do not feel overly congested in the main. House prices generally give much better value for money than typical Dublin properties.
If we dismiss the influence of the inhabitants of the remaining larger Irish cities (e.g. Cork, Galway, Limerick), then the greater majority of this large island has typically less than 2% of the overall 6 million population living in each of the remaining 29, more rural, counties. If relative peace and tranquility in a countryside home setting are your desires, then about 85% of the total area of Ireland can still provide this much treasured commodity.
2. Housing Density –
Half of ireland´s 32 counties can boast having less than 15 houses per square kilometre on average. In five attractive counties (Kerry, Mayo, Donegal, Leitrim & Roscommon), statistics prove that there are 10 or less existing homes per km² on average, making most areas outside of the towns and larger villages appear comparatively deserted by most European density standards. County Fermanagh is Northern Ireland´s least densely developed county with 12 dwellings per km² overall.
By comparison, on average, there are 456 homes squeezed on to every km² in County Dublin.
3. New Houses – just 15 years ago, in 1993, there were 21,000 new homes built in the Republic of Ireland. Year on year since, the prospective buyer has had a greater choice of new houses and apartments to select from. Incredibly, last year saw the annual amount of new homes coming on to the Irish market rise to over 100,000.
4. Housing needs – whilst there has been a general increase in the size of new homes built, with 3 bedrooms being the typical sleeping provision offered, the number of people living in each house (on average) has fallen significantly. Forty years ago, 4 people sharing one home was the statistical norm. Nowadays, maybe influenced by the higher availability of apartments, the statisticians tell us that the average home occupancy is just 2.8 persons.
5. Types of Homes – 88% of Irish residents still prefer to live in traditional houses, rather than flats or apartments. Roughly half of these (43%) enjoy the benefits of living in a detached home. In rural locations, newer homes are commonly built on plot sizes of typically a half-acre, giving generous space for car parking, gardens, patios and children´s play areas.
6. Buy or Rent? – in 2006 the number of occupied dwelling places in Ireland had passed 2 million. In these homes, 20% of occupiers (that´s 1 in every 5) had chosen to rent their property rather than buy it outright. The more expensive city areas, and Dublin prices in particular, have greatly influenced these countrywide statistics. Also in 2006, the average weekly outlay for a privately rented Irish home had passed the €200 mark.
7. Occupancy & Vacancy Stats – the 2006 census in the Republic of Ireland concluded that 15% of homes existing at the time were unoccupied. That could easily translate into the amazing statistic that 300,000 houses, cottages or apartments remain vacant. As these figures come from a period before the current housing market slump, the investor or tenant should take note and not pay over the odds with so much availability to consider. Over 200,000 extra new homes have been built in Ireland in the last couple of years. The property vacancy rate has probably increased accordingly, contributing to the sudden but not unexpected end to the Irish housing boom.
8. Buy to Let – for the first time in many years, average Irish property rents began to fall in the first quarter of 2008. This is good news for prospective new tenants, but not so good news for landlords. When one considers the quantity of vacant existing property crying out for a paying occupier, there is little prospect of rents rising again in the short term.
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