Limerick Residential Property Market 2021

Residential Property – Limerick 2021

Limerick is one of the youngest and fastest growing cities in Ireland and is increasingly seen as an attractive hub for innovation. The city offers a brilliant quality of life, affordable accommodation, and plentiful job opportunities.

The pandemic has fuelled an exodus from Dublin, and Limerick is well placed to take advantage of the greater freedom offered by remote working. As demand significantly outstripped supply in 2021, we experienced our lowest level of available housing stock in 15 years. We are pleased to have instructions to launch eight new homes schemes to the market this year in locations such as Castletroy, Ennis Road, Raheen and Adare.

Limerick is one of the youngest and fastest growing cities in Ireland and is increasingly seen as an attractive hub for innovation,” said Michael O’Connor, director of O’Connor Murphy. The city offers a brilliant quality of life, affordable accommodation, significant job opportunities and a growing population of 191,809. And with Shannon International Airport located just 24 kilometres from Limerick, it’s no surprise Limerick was selected to host one of the biggest sporting events in the world, the Ryder Cup, in 2027. Ireland became the largest native English-speaking nation in the EU in 2020, an opportunity which Limerick City and Council has capitalised upon with the new Limerick brand launch. Atlantic Edge, European Embrace – designed to reflect the country’s rich landscape and strategic location. The brand positions Limerick as the country’s ‘go to’ destination for living, working, tourism and investment. We believe that Limerick’s economy will continue to perform strongly as it positions itself as an affordable alternative to Dublin.

In 2019/2020, the mid-west experienced Ireland’s highest rate of employment growth of 7.4%. Given the level of development planned for Limerick, it’s no surprise that the treaty city is benefitting from the exodus from Dublin and abroad. Demand for property in the county has intensified since the last lockdown and it is continuing to do so. Buyers are choosing to move away from Dublin, London and overseas where accommodation costs and availability are a huge issue. Counties such as Limerick provide an escape route for these buyers, offering more affordable accommodation, lower traffic volumes and a great work life balance. “In recent months, we have seen locals moving home from Dublin and abroad which accounts for almost 50% of buyers, and almost a third of these are at the higher end of the market,” said Residential Sales Manager, Declan Barry. A factor in this appears to be the affordability of housing outside Dublin, combined with the increased willingness of employers and employees to engage in remote working.

2021 had the lowest level of stock since 2006, which, when paired with an influx of buyers, resulted in most second-hand homes selling for substantially above their asking price. At the beginning of 2021, we predicted an increase of 5%-8% but overall, we saw a 10% increase in three and four-bedroom semis, with two bed units achieving growth of 8%. Properties in the higher end of the market are attracting buyers who are relocating to Limerick and selling for more than their guide price. Second-hand properties suitable for first time buyers are in very short supply and three bed semi-detached houses are particularly scarce. A three-bed semi that would have cost €250,000 last year is now selling for €280,000 and over.

In the new homes market, low supply and extremely high building costs have pushed prices up significantly.

Prices are up 15% due to an increase in building costs but demand is still high. For example, we released 12 properties in Sli Na Manach, priced from €330,000 to €480,000 and they sold out in under three hours. To keep the system transparent and fair to all potential purchasers, we sold these properties online via a timed online bespoke system. The system allowed users to book the property of their choice and pay deposit online. Purchasers were very pleased with this system, and we will be using it again in 2022 for the eight new homes schemes that we have been instructed on.

All in all, demand exceeds supply in all sectors of the market, although we expect this to improve throughout 2022.

For further information on properties available or if you wish to discuss the market in more detail, please contact us