A key challenge for providers is delivering new supply, and the most important aspect of this is new apartments. Apartments are desired by Irish patrons all over urban and suburban areas in Dublin and other cities. There has been over a thousand units in the planning system, but the progression after securing planning permission to practical completion is very long. The progression is arduous and resource intensive, and it is a headache for the people securing these plans.
There is a very limited number of well-funded stakeholders with control of land with planning permissions in Ireland, and these stakeholders have the capability to bring substantial projects forward to scale. There is going to be a continuous restraint to supply in Ireland for the following years ahead, and the lockdown of sites has impacted housing output greatly. The lockdown of sites came from a result of the government’s policy to fight the worldwide pandemic.
A very large demand for houses and apartments in Ireland has led to new market trends. Researchers have said that the demand for houses and apartments is around 35 to 50 thousand units, but this depends on who is forecasting this data. An important fact is that 20,000 of these units are for Dublin, which is the largest city in Ireland. Dublin has been a leading European city in housing development and rental affordability. Supply levels for Ireland are estimated to be just under 20,000 in 2020, and the forecast is looking to be at 22,000 in 2021.
There will continue to be a supply and demand imbalance in Ireland for the foreseeable future. The Republic of Ireland has a need for all its sectors of the property market and construction sector to be operating at full pace. These sectors need to be operating at full pace in order for supply to increase in the coming years. The supply for private, social, owner occupier, and rental properties are most important.
Even though Dublin is the leading market for housing in Ireland, all Irish cities are involved in the supply for the housing sector. It seems that the best possible housing options are in Dublin, because of the increasing development of options. Downtown Dublin has focused its eyes on the apartment sector because many people in the younger generations have expressed the desire to live in rentals. It will be interesting to see how these Irish trends continue to change on into 2021 and beyond. It is important to check out yes.ie for more news on the Irish marketplace.
Written by John Spurrier, Mortgage Analyst for Online Application