In the first half of 2024, property transactions in specific regions of Ireland, including Greater Dublin and major cities such as Cork, Galway and Limerick, surged to nearly €386 million. The valuation is over twice the €146 million observed in the same timeframe in 2023, as revealed by an in-depth analysis by estate agency Sherry FitzGerald.
The monetary value is also larger than the consistent first-half average of €318 million, as per the authors of the report. It’s worth mentioning, however, that two substantial deals primarily influenced the results for this year’s initial six-month period. The most significant among these, the purchase of the ex-Jury’s Hotel site in Ballsbridge by the US Embassy, contributed €152 million to the overall expenditure. Meanwhile, the following highest land transaction was secured by Cairn Homes who shelled out more than €50 million for a sizable 70-acre residential location in Donabate, projected to accommodate over 1,020 novel residences.
The total number of property transactions stood steady, with 41 total purchases finalised within this year’s first six months, in comparison to 40 during the analogous period in 2023. However, the revenue generated for the second quarter of this year witnessed a decrease of 11 per cent to €182 million, falling below the habitual quarterly average, although it is still doubled in comparison to the figures registered in the same duration in 2023.
Jean Behan, senior economist and director of research at Sherry FitzGerald, asserted that this heightened activity is corroborated by renewed economic optimism, a drop in construction costs, the projected decrease in lending rates, plus the ongoing attempts by the State to tackle the housing conundrum.
Behan added that the upsurge in the volume of transactions and the resurgence of larger deals underscored these improvements.
A total of 59% of the plot sale deals conducted in the first half of the year took place in Dublin. Meanwhile, 12% of sales were spread out over Cork and Galway, where more activity was noticed during the first quarter. An additional 10% of plots sold within the first six months were situated in Meath, whereas Kildare and Wicklow made up the remaining 5% and 2% of sales, correspondingly.
Reflecting on this market behaviour, Brian Carey, Sherry FitzGerald’s commercial director, remarked that there are ongoing indications of a rise in confidence within the land development sector. This is thought to be a reflection of an improving forecast for interest rates and a more stable planning and policy atmosphere.
Despite this positivity, Carey highlighted a continuing lack of available land for development, which does not meet the current demand. But with Sherry FitzGerald Commercial’s recent success in strong sales of large-scale residential projects, Carey is confident that should developers gain access to more large-scale plots and the planning system remains stable, the development industry is eager to deliver the much-needed housing supply.
Sherry FitzGerald further emphasised that substantial additional efforts are required to address the persisting shortage of housing. This includes guaranteeing enough serviced land and necessary infrastructure supporting residential developments. To meet the demands of the growing population, a crucial evaluation of zoned land, which can be put to use within a reasonable timeframe, is needed.