Demand for new build homes rose in Ireland 114%

Demand for new build homes rose 114% in May compared to the same month last year, according to new figures from Property Listings. Taking all households into account, the data shows nationwide demand is 17% higher than 12 months ago.

The findings show that the demand for houses varies according to the value of the property.

• The biggest 38% increase was in demand for homes with a listed price of between €400,000 and €600,000.
• There was a 1,783% increase in demand for new homes in the €400,000 to €500,000 price range.
• The data shows demand for homes listing between €200,000 and €400,000 increased by 24%, while new homes in this price range increased by 186%.
• Homes priced between €600,000 and €800,000 saw growth of 20%, while newly built homes rose by 251%. Demand for homes valued at more than €800,000 was weak, but demand for these properties increased by 2%, while demand for new homes in this price range rose by 160% compared to last year.

The report says the biggest rise in price levels is due to eligibility criteria for the Help-to-Buy scheme, which requires a house to be worth €500,000 or less.

18 of the 26 counties across the country saw an increase in demand compared to the same time last year. Demand for homes in Dublin recorded the strongest growth, increasing by 34%, while demand for new homes across the county rose by 99%. Meanwhile, demand for homes in Meath increased by 29%, while demand in Limerick and Offaly rose by 26%.

Taking a closer look regionally, the figures show that demand for houses in Leinster rose by 26%, while Connacht-Ulster rose by 15% and Munster by 6%. Within these provinces, Connacht-Ulster recorded the strongest growth in new homes at 110%, Leinster at 75% and Munster at 69%.

In three of the four cities outside Dublin, demand was higher than last year - up 26% in Limerick, 13% in Cork and 9% in Galway. The same is said of demand for new homes in these three cities, with Galway showing the highest demand for new homes nationwide at 160%.

Limerick and Cork experienced similar increases in demand for new homes, with Cork experiencing an 88% increase compared to Limerick's 84% compared to the same period last year.

Today's report highlights that supply has not kept pace with growing demand. The Irish housing market has been in need of increased supply for years, and certainly for decades to come, the report states.