Top reasons for property investment in Ireland now
The world has still not recovered from the COVID-19 pandemic and this has affected economies the world over in every sphere. From developed countries of the first world to the underdeveloped economies in third world nations, everyone has been impacted. There is not a single industry that has managed to remain immune to the economic havoc wrought by the pandemic. In such a scenario, it is only natural for potential investors to wonder whether they should consider property investment in Ireland at the moment.
Some of the reasons why property investment in Ireland is a sound idea at the moment are:
Drop-in supply: Because of the threat of COVID-19 looming large in Ireland like the rest of the world, there has been a drop in the supply of homes this year. While there were approximately 30k houses to be built, barely half the target has been met. The house building numbers have been falling short consistently for the past few years in the country. Consequently, there are far fewer houses to meet the growing demand of consumers. This in turn leads to price rises.
Increase in demand: Over the past decade so, in the pre-pandemic era the economy has expanded along with wages and this has led to an increase in demand for housing. Along with remittances from overseas by expats and the influx of EU migrants, there has risen a steady demand for more housing units. That in combination with the drop in supply has led to property prices spiraling.
Lots of Money: The property industry in the nation has seen a fair bit of investment. Most of it is from overseas investors over the past decade with the hope of getting high returns on their investment. With both demand and supply moving in the right direction, a considerable sum of foreign money has been pumped into the markets. There is a demand for investing in high-rises that are then rented. The pandemic has also led to people spending less with most businesses shuttered. This has led to banks now holding considerable savings. After the COVID scare settles down there will be a rush for property investments.
Low-interest rates: This directly impacts the housing sector as the lower the interest rates, the more people are incentivised to borrow. This in turn increases demand and the prices soar. For the past few years, the EU Central Bank kept the rates almost zero, which led to a property investment boom all over the continent.
Positive economic outlook: Once the economy is back on track, the outlook for the Irish economy in 2021 is bullish. A robust economy complements growth in the construction industry. Plus, there will be more jobs and higher wages, making it possible for more people to be able to afford to invest in property. A flourishing economy has a direct impact on the increase in property prices.
These are just some of the reasons to consider investing in property in Ireland in 2021 and beyond.