The new homes market in Ireland has surprisingly stayed fruitful, even with the uncertainty of the pandemic still looming. With Ireland still restricted with lockdowns, many people are still working from home. I would like to discuss the positive news surrounding Irish home-buying, and its positive outlook for 2021.
Even with the increasing number of Covid-19 cases, 2021 contains optimism with the unloading of vaccinations and treatments. Also, Brexit has yet to have a massive effect on the market and its influence on other economies has yet to be fully realized. It is good that the new homes market has performed well, even after the second and third waves of the virus. Starting in January, construction sites started to close and this dealt an early blow to the market. Builders are aware they will likely get a greater number of mortgage exceptions in the first half of the year.
Additionally, the lockdowns have strengthened the resolve of would-be buyers to move from unsuitable accommodations. Early expectations of price falls and the “wait and see” approach among buyers has passed, but it may come to a head. There has also been a high level of sales velocity in Dublin, and throughout its suburbs. Covid has accelerated demand for these locations, and a good broadband connection is necessary for most home buyers. In response to working at home, developers are eyeing the production of quality offices. The new ideas involve repurposing homes in very unique ways, such as larger landings and workspaces under stairways.
With the government still supporting the Irish workforce, the income for upper class citizens has yet to dip in a significant way. Retail and hospitality workers usually account for a small portion of mortgages, but they are accustomed to the renting approach. Demand for mortgages has not been impacted too heavily during the pandemic, contrary to common thought. Prices are expected to remain stable in the new year, depending on location and property type. Work has started on a Shared Equity Scheme that will see a 30 percent increase of home equity, with 75 million in Euros already pledged. This will give lower income citizens the ability to afford home ownership. The Help to Buy scheme has increased the maximum rebate by 10,000 Euros. This program will run till the end of 2021, and it will incentivize first-time buyers to transact this year
The house market in Ireland is an important aspect of the economy, and it is imperative to keep tabs on its changes. 2021 will bring a massive change, but right now the outlook is positive with an economic bounce back coming in the near future.