Buying a property in Dublin: a complete guide

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Yes, the analysis of Dublin's property market is included in our pack

Considering buying real estate in Dublin? You're not alone!

Many people are captivated by Dublin's Irish charm and dream of owning a charming Georgian house or a contemporary apartment there.

Does it make sense, though? Are property prices increasing in Dublin? What is the current trend? Is it better to buy in Temple Bar or Ballsbridge? What are the property taxes? Can I get a very good rental yield? Where?

We know the answers.

The Investropa team has done their homework on this market. As a matter of fact, we've compiled all our findings in one pack. Get it now.

In the lines below, we will share some of this knowledge.

How is the real estate market in Dublin?

Is the property market going up or down? Let's look at fresh data and statistics.

Types of properties

In Dublin, there are various types of properties available for sale, catering to different preferences and needs.

These include apartments, which are typically smaller and situated within buildings; houses, ranging from cozy terraced homes to spacious detached ones; townhouses, often offering a mix of space and convenience; and luxury properties, which encompass upscale homes with premium amenities.

Additionally, you can find properties like duplexes with two levels, as well as studios known for their compact design.

Each property type offers its own unique features and benefits, giving potential buyers a diverse range of options to explore in the vibrant city of Dublin.

Should you buy or rent?

(In case you want it for yourself, not for rental purposes)

Whether you're considering settling in Dublin or already living there, you might be thinking about the pros and cons of buying versus renting a property in this lively Irish city.

Without a doubt, it's better to buy if you want to take advantage of potential long-term capital appreciation and build equity in a property.

One data can help you make a decision - the property price-to-rent ratio. This metric tells us how many years of rental income it would take to pay for a property at its current price.

According to Numbeo, the property price-to-rent ratio in Dublin is around 16.39, which is below the world average.

Simply put, it would typically require 16 years of rental payments to buy a property in Dublin.

Housing prices in Dublin

On average, according to the last data from Central Statistics Office Ireland, purchasing a property in Dublin would cost you around $7,500 per square meter.

Of course, prices vary. A city-center apartment in Dublin might have a different price per square meter than a suburban home in Swords. We actually give you a more detailed breakdown in our pack for buying property in Dublin and in Ireland.

To help you understand better, it is 2.5 times less than the property prices in the center of New York.

However, housing prices in Dublin are much higher (142%) than inhttps://investropa.com/blogs/news/dublin-propertyEdinburgh.

The most expensive neighbourhoods in Dublin are probably Ballsbridge, Ranelagh, and Foxrock, while the cheapest are probably Ballymun and Finglas.

Trends

First and foremost, we have to acknowledge that Ireland is, today, one of the most stable countries in the world. The last Fragile State Index that has been reported for this place is 20.8.

Remember this important aspect when pondering the viability of buying a property in Dublin.

If we look at the forecasts made by the IMF, Ireland's economy is expected to soar by 18.2% in the coming 5 years, resulting in an average GDP growth rate of 3.6%.

If you intend to invest in real estate in Dublin it's a good thing because a positive growth rate (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Ireland, the average GDP per capita has changed by 36.2% over the last 5 years. Almost no other country has achieved a higher level of success.

This is a strong positive signal: housing prices in Dublin might become more expensive in 2024 and later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Ireland right now.

Buying property in Dublin

Buying real estate in Dublin can be difficult due to the lack of reliable and up-to-date information available during the buying process. That's why we have created the pack to buy property in Dublin and in Ireland.

Buying process

Within our pack, we have outlined the complete buying process. This includes the necessary documents, the applicable taxes, as well as information about where to locate properties, and more.

Here, we are providing you with a simpler version to assist you in better comprehending the information.

This is the step-by-step process to purchase a property in Dublin:

1. Research the Dublin property market and set a budget, considering additional costs like stamp duty.
2. Secure mortgage approval from a local lender or arrange funding.
3. Engage a solicitor familiar with Irish property law.
4. Begin property search with a Dublin-based estate agent.
5. View properties and consider their proximity to amenities like LUAS or DART stations.
6. Make an offer and negotiate terms, subject to satisfactory title and planning permission checks.
7. Sign a Sale Agreement with conditions for completion, typically within 4 weeks.
8. Conduct property surveys, including structural and boundary assessments.
9. Finalize mortgage documentation with your lender.
10. Transfer funds to your solicitor's client account and arrange for closing costs.
11. Complete the sale, exchange contracts, and pay the stamp duty to the Revenue Commissioners.
12. Register the property with the Property Registration Authority and obtain the deeds and ownership certificate.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Ireland.

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Where to find a property

Discover properties in Dublin through these websites:

• My Home - Ireland's leading property portal offering a wide range of homes for sale and rent, new homes, and professional services for property buyers and sellers.
• Daft.ie - Ireland's top property website and app, empowering users with innovative features and market analysis for informed decisions.
• Property.ie - A comprehensive property platform featuring thousands of properties for sale and rent across the Republic of Ireland and Northern Ireland.
• Find a home - An Irish platform offering property listings for students, professionals, and businesses alike.
• Sherry FitzGerald - Ireland's largest estate agent network with 103 offices nationwide, providing services for buying, selling, renting, valuations, and mortgages.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Ireland.

Which properties for which budget?

As mentioned before, the average price per sqm in Dublin is $7,500. A 1-bedroom property of 60 square meters would cost approximately $450,000, and a 2-bedroom property of 85 square meters would cost approximately $638,000.

However, the amount you pay for a property can be different based on its characteristics and where it's found.

Housing prices in the top areas of Dublin are usually at a premium. In Ballsbridge, a villa might cost around $1,820,000, whereas a condominium in Rathmines could be priced at $800,000.

Certain places come obviously with a lower price tag. You might discover a property in Finglas for $350,000, or you could find a property in Ballyfermot priced at $290,000.

We give more details about property types and areas in our full pack for buying property in Ireland.

Risks and pitfalls

Here are the main pitfalls specific to buying a property in Dublin, Ireland:

• Stamp Duty: Ireland has a unique stamp duty system, and overlooking these costs can impact affordability.
• Leasehold vs. Freehold: Understanding the tenure type is crucial as some properties may be leasehold, subject to ground rent.
• Radon Gas: Certain areas in Dublin may have higher levels of radon gas, which can affect health and require mitigation measures.
• Planning Permission: Verify if any planned developments may obstruct views or affect the property's value.
• BER Certificates: Check the Building Energy Rating to gauge energy efficiency and anticipate future utility costs.
• Flooding Risk: Some areas in Dublin are prone to flooding, and it's essential to assess flood risk before purchase.
• Ghost Estates: Be cautious of unfinished or abandoned developments that may face future issues.
• Rent Pressure Zones: Understand rental restrictions in designated zones to assess investment potential.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Ireland Property Pack

Living in Dublin

Living in Dublin is a vibrant and exciting experience, with a great selection of amenities and attractions for those looking to buy property.

Cost of living

The cost of living in Dublin is generally higher than other parts of Ireland, but is still lower than larger European cities such as London and Paris. Prices for basic items such as groceries, transportation, and rent can be expensive but are still manageable with a budget.

Here are some examples to better understand the cost of living in Dublin, Ireland:

• A cup of Barry's Tea at a local café: $3-$5.
• Rent for a one-bedroom apartment in the popular Temple Bar neighborhood: $1,800-$2,500 per month.
• Monthly Leap Card for Dublin Bus and Luas (tram) services: $100-$130.
• A bottle of Irish mineral water (e.g., Ballygowan) at a grocery store: $1-$2.
• Utilities (electricity, heating, cooling) for an 85m² apartment in Dublin: $100-$150.
• A pint of craft beer at a local brewery: $6-$8.
• Entrance fee to the Guinness Storehouse, a popular attraction: $20-$25.
• Health insurance coverage for a family of four: $300-$500 per month.

Neighbourhoods and spots

Since we want to give information simply, we made a table that shows the different parts of Dublin. For yields, prices and rents, check our property pack.

Life in Dublin

Dublin is a major economic hub in Ireland, with a strong focus on technology, finance, and services. The city is home to many of the world's leading multinational companies, and its economy has been growing steadily since the mid-2000s.

Analyzing the IMF's data, Dublin's GDP accounts for almost 23% of Ireland's GDP. That's a good thing because, when you buy property in a city with a strong economy, your investment is usually safer and not as affected by changes in the market.

What expats usually like the most in Dublin is its vibrant cultural scene, with plenty of pubs, restaurants, and live music venues to explore, as well as its friendly locals. Additionally, Dublin is a great place to live due to its excellent public transport system and easy access to the rest of Europe.

However, the crime rate index of Dublin, which is around 52, could be better, which is something to take into consideration if you're thinking about living there. Examples of crimes in Dublin include burglary, theft, drug trafficking, and gang-related violence, which primarily affect the local population and not expats.

A good point for a property investor - Dublin has a mass rapid transit system known as the Luas, which consists of two tram lines.

Access to healthcare in Dublin is good, with a Healthcare Index of 52. A strong healthcare infrastructure will always improve the desirability of a location, which is a good thing for real estate.

Finally, it is worth noting that Dublin has a couple of universities with a global ranking: Trinity College Dublin, RCSI University of Medicine and Health Sciences, University College Dublin and Dublin City University.

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Renting out in Dublin

If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.

Long-term

Tenant Profiles in Dublin

According to the data reported by Wikipedia, the home ownership rate in Ireland is 70%, which is average.

It means that, if you decide to buy and rent out in Dublin, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target young professionals, families, and students from the universities in Dublin. You could also target expats who are looking for short-term rental accommodation.

Here is a little summary table we've made for you.

Rental yields

Nowadays, the rental yields you get in Dublin are between 5% and 7%. There are some opportunities. For a "good" rental yield, you should aim for 7% or more.

Rental yields in Dublin are highest for properties located in areas with good transport links and access to amenities such as shops, restaurants, and entertainment. This is because these areas tend to attract higher demand for rental properties due to their convenience and desirability.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Dublin are taxed at 10%, which is very advantageous.

Short-term

You could also decide to rent short-term to tourists, business travelers, or students studying abroad in Dublin. Additionally, you could rent to those attending a conference or special event in the city.

If you decide to go with that option, look for properties in the city center, particularly in the Temple Bar and Dublin 2 areas. These areas are popular with tourists and have a high demand for short-term rentals.

Currently, there are approximately 4,000 active Airbnb listings in Dublin, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $233, which is quite high.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Dublin can make around $3300 per month. Also, the average occupancy rate is estimated at 81%.

Is it worth buying real estate in Dublin then?

Certainly, when it comes to buying property in Dublin, it's a decision that heavily depends on your personal circumstances and financial standing. Dublin is an enticing city with its vibrant culture, strong economy, and potential for real estate investment.

If you plan to make Dublin your long-term home, buying property can offer stability and potential financial benefits in the form of equity and capital appreciation. The favorable property price-to-rent ratio suggests that buying may make sense for those seeking stability and a long-term investment.

However, there are notable challenges to consider. Dublin's property market has seen significant price increases, making it unaffordable for many first-time buyers or those with limited budgets. High property prices, along with additional costs such as taxes and maintenance, can lead to substantial financial commitments.

Market volatility is also a concern, as real estate values can fluctuate over time. If you value flexibility, have plans to relocate, or are concerned about the crime rate, renting may be a more practical choice.

In essence, buying property in Dublin can be a smart move for some, particularly those planning to settle long-term, but it's not without its financial and market risks that should be carefully weighed before taking the plunge.

Make sure you understand the real estate market in Dublin

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.