€1M+ Irish Property Listings Up 26% in 10 Days

As summer fades and a new academic year begins, Ireland’s property market, particularly at the luxury end, is undergoing a notable transformation. With a significant surge in listings for homes priced over €1 million in the past ten days, there are clear signs that the market is reacting to both seasonal shifts and broader global trends.

Between August 22 and September 1, 2024, the Irish property market has seen a striking surge for €1 million-plus properties listed on Daft.ie, with an increase of over 26% in just ten days. This significant uptick is particularly notable when compared to the broader market, where the total number of property listings rose by a more modest 2.6% during the same period.

This sharp contrast suggests that the high-end segment is undergoing distinct dynamics, shaped by a combination of local and global factors.

On the local level, several speculative factors could be influencing the surge in €1 million-plus property listings. A key consideration is the potential for lower interest rates later in the year, which could make mortgage repayments more affordable and encourage buyers to enter the market sooner rather than later. This anticipation might be prompting homeowners to list their properties now, aiming to attract buyers who are eager to lock in favourable financing conditions.

There are growing discussions about possible changes in government policies, which could lead to shifts in housing support and taxation. Such speculation may be prompting buyers and sellers to act more swiftly, contributing to the recent increase in high-end property listings. Additionally, the persistent gap between supply and demand, especially in sought-after areas, continues to support strong prices. This environment, influenced by economic and political uncertainties, is likely driving heightened activity in the luxury property market as all parties try to navigate the evolving landscape.

However, the growing number of listings does not necessarily signal a booming market. On the contrary, the volume of €1 million-plus homes being sold has been on a downward trend over the past two years. Sales of these high-end properties have dropped by 21% in just two years, with the April-June 2024 figures reflecting a significant decline compared to previous highs. Despite the increase in available properties, the actual transaction volume suggests a more cautious market.

Industry experts, such as Dublin auctioneer Owen Reilly, attribute this decline not to a lack of demand but to supply issues. He notes that while demand for homes priced over €1.5 million remains strong, with many properties selling quickly when priced appropriately, buyers are becoming increasingly selective. This suggests that while the market is saturated with listings, purchasers are focusing on value and readiness to act only when the price aligns with their expectations.

Globally, the surge in luxury property listings reflects broader economic trends where high-net-worth individuals are increasingly turning to real estate as a haven amid economic uncertainty.

As Bess Freedman, CEO of Brown Harris Stevens, highlighted in a recent CNBC interview, "When you're paying $100 million, people are thinking about the rates, they are thinking about what's going on in the economy globally... and that gives people the security to buy." With financial markets fluctuating and traditional investments offering less predictable returns, prime properties have become a preferred asset class for wealthy buyers worldwide.

Freedman also noted that while economic conditions appear to be improving, with potential rate cuts on the horizon, the allure of luxury real estate remains strong because it provides tangible security in uncertain times.

This global appetite for high-quality, secure investments is influencing the Irish market, driving significant growth in listings at the top end.

In conclusion, while the surge in high-end listings signals increased market activity, it is coupled with a more cautious transaction environment. The dynamics of supply, demand, and buyer sentiment are creating a complex landscape for Ireland's luxury property market, reflecting broader global trends and local uncertainties.