Ireland is a prosperous country with one of the highest per capita incomes in the world. In recent years, the government’s efforts to promote the booming high-tech sector, trade and investment have turned Ireland into a hub for expats, foreign students and IT professionals. With one of the fastest growing populations in Europe, the Irish property market is attracting foreign and domestic buyers.
As Ireland’s economy improves, the average cost of Irish property is now €263,000 (£235,900), which marks a year-on-year growth of 3.7 percent. In the months following the easing of covid restrictions, prices in Ireland are set to continue rising. This makes investment property in Ireland an attractive option. According to the European Union’s Eurostat house price data, all European countries are seeing growth in property prices over the last year.
We’ve provided a practical guide for the top 7 best places to buy investment property in Ireland in 2021. With this advice, you can navigate the property market and pick a property in a location that will produce great returns.
Dublin sits at the top of the list for best places to buy property in Ireland according to PwC’s Emerging Trends in Real Estate Report 2019. The local real estate market is strong based on the overall investment potential and development prospects. Dublin comes in third place as the most desirable place to invest in Europe, after Lisbon and Berlin. The city’s tech growth is attracting giants like Google, Facebook, Accenture and more, whose growing workforce prefers renting to buying.
Properties in Dublin offer the best rental yields on investments in small apartments. One-bed apartments in the city’s centre offer the best return-on-investment. If you invest in a one-bed apartment when you buy a property in Ireland, around the mark of €200,000 (£179,480) in Dublin, you can expect to let it for €1,380 (£1,240) per month, earning a gross yield of 9.35 percent.
Part of Ireland’s charm lies in its heritage and quaint historic buildings. Cork encapsulates that perfectly. Cork has a beautiful and diverse landscape. It is the second biggest city after Dublin and one of Ireland’s major ports. With a population of about 120,000 – Cork is a busy, cosmopolitan city with an international airport.
Many tourists flock to Ireland for its stunning scenery and lush outdoors. Galway’s mild climate, rugged but beautiful countryside and historic towns and cities make it a tourist’s dream. It is the second largest county in Ireland and one of the least densely populated. The port city gets especially busy in the summer months for its lively arts scene that attracts world-famous performers during its vibrant arts fest.
Previously voted as the top place to live in the world, Greystones sits in northern County Wicklow within close proximity of Dublin and Wexford.
Despite being on the smaller side, Greystones is a busy little place. It boasts a redeveloped waterfront and harbor, restaurants, and two pristine beaches. Its location makes it popular with tourists in the summer as well as winter for its mountains and snow.
A traditional boutique town, Ennis has always been one of the best places to live in Ireland. It has the look and feel of a typical rural place, but it’s only 12 miles from Shannon Airport, making it very accessible.
There’s no shortage of green, open spaces and historical sites to explore, which draw flocks of tourists in summer months. There are various sports clubs as well as a golf club that was founded in 1907 that appeal to people looking for a laid-back lifestyle.
Westport is located in County Mayo. It frequently makes it into the lists for best places to live in Ireland in numerous surveys. The town is well-known for its stone bridges and inspiring views of Clew Bay. It is calm and family-friendly
Westport is a preferred place for families with children. It offers a range of activities and sports, but also has a busy nightlife, and open fields and beaches.
Kinsale sits in County Cork, which is one of the most popular places to live in Ireland for expats. Although it was originally a fishing town, it has since grown to be an important economic hub with many European companies setting offices here.
Kinsale is located at the mouth of the River Bandon, an area that is popular with tourists and locals for its beauty. The town is well arranged and boasts manicured golf courses, yachting, and angling, as well as art galleries, award-winning restaurants, and gourmet food festivals. The quality of life and climate of the town attract many tourists and expats. Kinsale sits at the end of the Wild Atlantic Way Trail, one of Ireland’s most popular road trips.
Should you buy property in Ireland?
Whether you’re a first-time or experienced property investor, buying a property in Ireland is a great idea. There are plenty of practicalities to invest in a property in one of the most sought-after towns in Ireland as many choose to visit or move to the country for the beautiful countryside to explore and rich culture to experience.
Still not entirely convinced? Take a look at some of our top reasons why you should buy an investment property in Ireland and you might change your mind.
What should you consider before buying property in Ireland?
Really exciting for Ireland property investors are the new, emerging industries which are attracting entrepreneurs and highly paid talent. Emerging industries here include IT, software, creative, digital and tech – the most notable of which being fintech.
In addition to its dynamic job market, Ireland is an absolutely huge tourist destination. It attracts tourists not just from the UK but from around the world, thus creating a huge demand for accommodation.
The towns we covered in this guide benefit from an absolutely huge property letting market. As well as local residents, Ireland offers a student letting market and also tourist and holiday letting markets.
The tourist letting market – with properties being let out on Airbnb.com, Booking.com and similar sites – is one of the most attractive for Irish landlords. According to data compiled by Hitachi Personal Finance and Airbnb, Ireland is one of the most profitable places to own a holiday home.
For investors that want to invest in a relatively robust and stable market, Ireland remains a solid choice. As the preferred choice for many expats and tourists in 2020, the excellent growth of regional counties has pushed new developments and infrastructure improvements, putting it firmly at the top of investor wishlists for 2021.
With the spotlight moving from international hubs like London to Dublin and Belfast, the market for letting properties in emerging cities is opening new opportunities for investors. It is worth noting that Irish long-term interest rates are at a record low and are now trading around 0.066 percent. These low rates are likely to lead to banks reducing existing fixed-term interest rates on mortgages if they remain this low for longer.
Buy-to-let investment properties in Ireland are attractive for their relatively moderate buying costs. As a general rule, round-trip transaction costs vary between 4.94 percent and 13.205 percent of the property price. You will also pay stamp duty, which is 1-2 percent of the price and any legal fees (1-1.5 percent of the price, plus 25 percent VAT). As a general rule, you will have to front for fees relating to the registration of the property.
The good news is that Ireland boasts moderate capital gains taxes, and moderate taxes on rental income. This makes investing in a buy-to-let property in the country very attractive. Capital gains tax is charged at a flat rate of 33 percent, and rental income is taxed at 20 percent.
Keep in mind that one of the most important factors when considering a location for investment is its transport connections. Ireland has five international airports and the top 7 best places to buy investment property in Ireland in 2021 are all accessible by car. Most countries around Europe and further afield are able to fly in directly, and often for a bargain price with carriers like Ryanair. Also, Ireland is connected to the UK by ferry.
All in all, Ireland is renowned for its variety and quality of real estate and the potential return on investment, which can be achieved by investing in carefully selected Irish property.
When looking to invest in a property in Ireland, it’s sensible to work with a company that knows and understands the market and the location.