Dublin is a thriving and popular relocation hub for people from all over the world. In fact, in Dublin alone, there are 1.2 million people. When you consider there are just over 5 million people in the Republic of Ireland as a whole, that’s a massive volume of residents choosing the Dublin lifestyle.
Dublin has one of the strongest economies in Europe. A large number of multinational companies are attracted to the city by its highly skilled workforce and favourable tax policies. This, in turn, drives demand for housing, both for local residents and for the growing number of ex-pats working in the city.
If you are looking to invest in a property in this diverse city, you are probably well aware that there is a shortage of housing stock and currently fierce competition for all residential property from potential buyers and investors. Although the rapid price increases we saw in 2021 and 2022 are set to slow down, prospective buyers should still expect property prices to increase by 2-3% in 2023.
There is also a shortage of rental stock, so future prospects for landlords who enter the market look very positive. The average property price in Dublin sits at €500,000, and the anticipated increase in value makes Dublin and the surrounding areas an attractive investment opportunity.
For investors looking for the best value, it makes sense to consider investing in the up-and-coming regions of Dublin rather than the already-established property hot spots where you can get more for your money.
Where is the best place to buy in Dublin?
Along with the rest of Europe, Dublin continues to see property prices rise. Property prices in the city have increased by 8.4% year on year. That being said, rental prices in Dublin and the outer suburbs are still relatively high compared to other areas of Ireland. A three-bedroom property in Dublin city rents for an average of €2,948, which will still provide a healthy yield for any investor looking at Dublin for their next opportunity. When considering the best places to buy in Dublin, you may want to consider the up-and-coming areas of the city, which provide amenities for families and commuters looking for the perfect balance between city life and quiet neighbourhoods. While your rental income may be less than the one of a property in the city centre, you will likely pay a lower purchase price. This means your overall yield and profit are healthier than if you opted for a smaller property in Dublin’s most elite districts.
In this guide, we will look at five of the top up-and-coming areas in Dublin and advise you on where we consider the best places to buy in 2023 can be found.
Stoneybatter Dublin 7
Voted Dublin’s trendiest neighbourhood of 2022, Stoneybatter is a popular and highly sought-after neighbourhood in Dublin. The area has become well known for its vibrant atmosphere and proximity to all the amenities Ireland’s capital city offers. It’s an area that has undergone regeneration in recent years and a neighbourhood that is expected to grow in both popularity and appreciation of property value.
Stoneybatter is a short 10-minute walk to the centre of Dublin, making it a rental property hotspot popular with a range of tenants. The area’s immediate facilities, such as local shops, bars and cafes, make it even more appealing to prospective renters. The median house price in Stoneybatter Dublin 7 is €385,000. You can expect a 2-bed semi-detached or terraced property like this one to rent for between €2,000-€2,500 pcm and earn you a gross rental yield of between 5-7%.
Image by William Murphy via Flickr
Lusk & Rush in North County Dublin
Lusk and Rush are located in North County Dublin. One of the key reasons to invest in Lusk & Rush is its growing population. This area of Dublin is also well-connected to the rest of the city. It offers easy access to the centre via road, rail and bus links, making it convenient for residents to commute to work, shop, and enjoy all that the city has to offer.
The area’s significant growth is driving up demand for housing and boosting property prices. Lusk and Rush’s unique combination of affordability, good transport connections and a strong community make it an attractive location for real estate investors looking to maximise the value of their investment. This area offers strong potential for long-term appreciation of property values.
Another advantage of investing in Lusk & Rush is the affordability of property prices compared to other areas of Dublin. This makes it an attractive option for first-time buyers and investors looking to maximise their return on investment without breaking the bank. The area also boasts several undeveloped banks, prime for future property development.
For example, the average price for a 2-bed property in Lusk is €261,306. The average rental in Lusk is currently €1,626 pcm. Investors can expect to achieve between 5-8% yield in the area from a rental property depending on property type, cost and other factors.
Greystones, County Wicklow
Image by William Murphy via Flickr
The coastal town of Greystones is located just south of Dublin, making it a convenient location for those commuting to the city for work or leisure. The picturesque area boasts beaches, cafes and a great range of local amenities, making it popular with both residents and tourists. Greystones is another area that has undergone massive redevelopment in recent years, which has led to an increased demand for more housing and more services in the area, giving it a huge growth potential.
The town also has excellent transport links. It is accessible by rail, road and sea. It’s also located on the DART line, making it perfect for those who commute to Dublin but want to live a little further afield.
The average property price in Greystones is currently €524,464. Most of the properties sold over the last twelve months were semi-detached dwellings. Smaller two-bedroom apartments like this one can be found in Greystones for a more modest price of €250,000. With average rental prices for a two-bedroom property currently around €2,000 pcm, a healthy yield between 8-10% is achievable.
Maynooth in County Kildare
Maynooth in County Kildare is a great place to consider investing in property in Dublin. The town is just 20 kilometres from Dublin, making it an excellent choice for commuters. It’s also home to several high-tech companies and research institutes, as well as the National University of Ireland Maynooth, which attracts a good mixture of students and professionals to this thriving area.
Similar to Greystones, locals benefit from a good quality of life, a stable economy and fantastic transport links. The average property price in Maynooth is €463,000. However, it is possible to find a property like this three-bedroom property for €340,000. A house like this could achieve a rental income of €2,500 pcm and a respectable yield between 7-9%.
Image by William Murphy via Flickr
Approximately 7.3km North-West of Dublin, the Finglas suburb can be found close to Dublin Airport and the M50 and N2 motorways. The village centre is cosy, with a traditional atmosphere and boasts a range of shops, cafes, and restaurants. Finglas also has several leafy parks and green areas for visitors to enjoy. It is popular with commuters due to its excellent positioning and is known as one of the best Dublin neighbourhoods for families due to its selection of schools and community. Finglas presents a perfect opportunity for anyone looking for a value-for-money Dublin property.
As an investor, it’s possible to find properties that provide a healthy yield. There is a wide range of properties on offer, from family homes to luxury apartments like the one mentioned below. This two-bedroom spacious ground-floor apartment can be purchased for €239,950 and rented for approximately €2,200, earning a gross yield of 11.73%.
These are just five areas of Dublin where investors can make a good return on their investments through buy-to-let properties. In addition to the purchase price, an investor should expect to pay 1-2% stamp duty plus legal fees (around 1-1.5% plus VAT). Dublin’s booming economy, sustained population growth, and growing reputation as a technology hub are receiving a lot of attention for all the right reasons. Ireland’s buy-to-let market is still an attractive prospect due to the moderate property prices, especially in the up-and-coming areas with excellent transport connections into the city, it’s clear that Dublin’s up-and-coming locations pose an excellent opportunity for any potential investor.
If you are considering investing in a Dublin property, we recommend you seek expert advice from a company with knowledge and experience in the area you are looking to invest.