Property in Dublin

Dublin, the capital city of Ireland, is one of the most exciting, lively and economically prosperous cities in Europe.  It is a city of sharp and striking contrasts and a city that is booming.

Average property prices in Dublin increased by almost 9% in 2004 alone and as a result it is an exciting city for property developers and investors alike, and with the abolition of property tax and attractive mortgage rates it is also a city attracting more first time buyers.

Because the property market in Dublin remains affordable for first time buyers (just!) it remains buoyant and it is not experiencing some of the wobbles, uncertainties or even periods of stagnation that London is for example. 

There is no restriction on foreign buyers in Ireland which means that Dublin has seen a fair amount of speculative property investment from abroad.  Property investors have not been disappointed with their returns either and with the extensive regeneration that Dublin is undergoing there is still plenty of room for profiting from property.

If you need to raise a mortgage to buy real estate in Ireland then depending of course on your financial circumstances it is possible to borrow up to 90% of the value of the property.  As mentioned there is no ongoing property tax in Ireland anymore and so the only associated costs when purchasing are your legal fees which can be up to 1.5% of the purchase price, land registration and ownership fees which come to a maximum of around EUR 800, and stamp duty. 

Stamp duty is the real sting in the tail though - as it is in the UK.  It is charged on a sliding scale depending on the price of the property and it is largely due to this tax that the current slow down in England and Wales is being blamed.  As house prices rise so the amount of stamp duty increases in relation which pushes a just affordable house out of reach of first time buyers.  Ireland has to be careful that it doesn’t fall into the same trap because pushing first time buyers out of the market cripples the market.  The maximum stamp duty payable is 9%...but many first time buyers find that they are except from paying any stamp duty if their property’s value remains below a particular threshold.

In terms of what Dublin has to offer…it is a beautiful and ancient city set beneath the Wicklow Mountains.  It has a massive wealth of culture and history, many beautiful buildings, galleries, museums, a fantastic university, great shops, massive employment prospects and of course it is a party city!  Dubliners know how to party and it is largely because of this very fact that so many visitors flock to the city annually.

If you’re interested in buying property to let out for an income there are great short term rental prospects in Dublin as it is a university town and the annual influx of students creates massive demand for rental accommodation.  Furthermore, many office workers and executives who live elsewhere at the weekend need accommodation to rent in the city from Monday to Friday.

If you personally need to find property to rent in Dublin you are well accommodated and protected.  You can look in local papers and on the internet for what’s available and then expect to have to pay your prospective landlord a month’s rent in advance and a deposit of a month’s rent as a bond.  You will be given a rent book which details the terms of the rental contract and basically protects your rights as a tenant.

Certain areas of Dublin have been neglected and run down for many years.  Because the city is prospering and the Government of Ireland are aware that Dublin is their flagship city a great deal of money is now being ploughed into the regeneration and urban renewal of certain areas including the docklands.  This in turn brings more property into the market place which helps to ease demand and prevents property prices from sky rocketing through lack of supply.  Prices naturally increase however as the desirability of property in Ireland increases, as more people want to move to Dublin because of the job prospects and because overall Ireland is a booming economy.