Property for Sale in Southern Ireland

The property market in Southern Ireland is remaining incredibly healthy and according to the latest findings from the Central Statistics Office, the Irish economy is enjoying healthy times and being greatly boosted by the property economy.

This has led to some concern over whether economic growth can be sustained by local demand for property for sale in Southern Ireland – but a new inward flow of foreign investment into the property markets of Southern Ireland means that this concern may be premature.

Taking County Mayo as a prime example of the success of the Southern Ireland property market; its house prices have risen by in excess of 220% in the past ten years and the property developers expanding the residential housing market in the county have been incredibly astute and drip fed properties to the market to sustain demand. 

Property prices in County Mayo are rising fast as the demand/supply gap widens, but at the same time property prices across the region are lower than the national average which has led to renewed demand nationally and internationally.  There is a strong demand for property for sale in County Mayo from first time domestic purchasers as real estate is more affordable in the county than elsewhere in Ireland, but at the same time there is strong demand for property to rent which means that buy-to-let property investors from all over the world are also entering the market and competing for what property there is available for sale - which in turn is continuing to fuel price increases.

This broad range of interest and wide level of activity means that the current price gains that property for sale in Southern Ireland is enjoying are sustainable.  Backing this up is the fact that international interest in property for sale in Ireland has increased over the past twelve months and contributed to Ireland’s impressive GDP figures for 2005 and the first quarter of 2006.  Thanks largely to broad interest in the Irish property market GDP growth figures are on target to hit 6% in 2006.

Despite all of this positive news from the property market in Southern Ireland some economic experts have been warning that the Irish economy and GDP growth are actually too heavily reliant on the property and construction industries which could ultimately lead to the booming market going bust.  Adding to the concerns of certain individuals and groups of people such as the Central Bank of Ireland governor and the Irish Exporters Association is the fact that the European Central Bank is poised to increase interest rates imminently which could have the effect of making home finance more expensive and thus reducing the numbers entering the property market.

If affordability is reduced then interest will be reduced accordingly - and if both of these factors are reduced then property for sale in Southern Ireland will cease to be quite so successful…but at the present time it is an industry sector in a nation where both are going from strength to strength.