A wave of city workers moving home to their native counties is expected to fuel the current rise in house prices throughout 2021, according to a nationwide survey of estate agents.
Property prices in Donegal are predicted to rise by 4% in 2021, after a rise of 2% in 2020.
Agents have identified boomerang buyers – those who previously travelled home for the weekend and then back to the capital, as leading the charge in a “relocation revolution” that is changing the face of house buying nationwide.
A survey carried out for the Irish Independent by the Real Estate Alliance group has found that agents throughout the country expect prices to rise by 4.4% on average in the next 12 months.
“Quality broadband and remote working possibilities have replaced commuting strategy and location as the drivers of an extraordinary market which is outperforming all expectations – despite the Covid crisis,” said REA spokesperson Barry McDonald.
“Nationwide we are seeing the same phenomenon of people returning to their roots to live – safe in the knowledge that they can work from home.
“This has not lessened demand in Dublin with a massive urgency among a growing cohort of buyers, with the October mortgage approval rates up by 15% year-on-year, according to the Banking And Payments Federation Ireland, but supply going in the other direction.
“This year lending restrictions (Central Bank rules) and Brexit uncertainty will prevent runaway growth, but a shortage of suitable properties will continue to put upward pressure on prices over the coming 12 months.”
