The Society of Chartered Surveyors Ireland Mid-Year Commercial Property Review and Outlook Report 2025

Report indicates market is entering a transitional phase, characterised by signs of recovery alongside persistent structural challenges.

The key findings: 

• Overall capital value and rental expectations for all prime commercial property asset types show positive outlook for the next 12 months 
• Chartered Commercial Surveyors expect prime industrial values and rents to rise by an average of 2.5% nationally
• Prime office capital values and rents are expected to increase by 2.1% and 2.6% respectively
• Prime retail capital values are expected to rise by 1.0% and rents by 1.8% on average
• 51% of survey participants believe the market to be in some stage of recovery while 57% believe current valuations represent fair value  
• Almost two thirds of agents believe businesses plan to optimise their office footprint
• A similar number believe occupiers are prepared to pay for enhanced health and well-being features

Thursday, August 28th 2025: Occupier sentiment in commercial property has continued to improve over the first half of 2025, with chartered commercial and valuation surveyors predicting a rise in rents and capital values across prime commercial property asset types over the next 12 months.  

As has been the case in recent years, both prime and secondary industrial properties continue to be the standout performers, driven by high demand for logistics and distribution spaces. 

The Society of Chartered Surveyors Ireland Mid-Year Commercial Property Review and Outlook Report 2025 predicts that national average capital values and rents for prime industrial will rise by 2.5% over the next 12 months. 

Chartered commercial and valuation surveyors expect prime office capital values and rents to increase by 2.1% and 2.6% respectively, while they believe prime retail capital values will increase by 1.0% and rental values by 1.8% on average. 

The President of the SCSI, Gerard O’Toole, said that while the market is continuing to face structural headwinds, it is showing tentative signs of stabilisation and improvement. 

“We are seeing resilience in key areas particularly in the industrial segment, where demand remains robust, and in prime office and retail assets where quality and location are driving selective growth.” 

“Of course, challenges remain. These include subdued investor activity due to ongoing global uncertainty, changing work patterns and evolving consumer behaviour. However, the overall sentiment is one of measured confidence.” 

Two years ago in the corresponding survey, a majority of respondents, 61%, viewed the market as expensive or very expensive. In this survey, that figure dropped to 31% while the proportion viewing valuations as fair value increased to 57%. 

In addition, 51% of respondents perceive the market to be in some stage of recovery or upswing, with 33% identifying early recovery and 18% mid-upturn. 

Mr O’Toole said these findings suggest that sentiment has shifted towards cautious optimism with most participants anticipating further recovery rather than renewed decline. 

“Combined with previous sentiments of more stable credit conditions and valuations being viewed as closer to fair value, the market appears to be in an early recovery phase, with potential for continued capital appreciation alongside moderate rental growth.” 

“While the recently finalised US/EU trade deal has removed a significant source of international uncertainty, questions remain over the long-term implementation and impact of the agreement.” 

Sectoral Analysis

For prime industrial properties, 50% of surveyors expect the capital value to increase and 51% anticipate an increase in rental values while the number forecasting, they will remain the same are 40% and 44% respectively. 

In contrast, for secondary industrial properties, only 34% expect capital values to increase, and 42% expect rental prices to rise. However, a significant portion, 57% for capital and 44% for rental, respectively, expect prices to remain the same. 

Fifty-four percent of surveyors expect that the capital value of prime offices will increase, while 33% expect it to remain the same. In terms of rent for the prime office, 56% of surveyors anticipate an increase, whereas 34% expect the rent to stay the same.  

Regarding secondary offices, only 14% of surveyors expect the capital value to rise, while the number forecasting a rise in rent is just 21%, with 81% anticipating that rental prices will stay the same or decrease. While 47% expect capital values to remain the same, 39% believe they will fall. The respective figures for rent are 42% and 37%. 

For prime retail spaces, 34% of surveyors expect capital values to increase over the next 12 months, while 48% anticipate an increase in rental values. However, a majority, 59% for capital and 45% for rental, believe these values will remain the same.  

In contrast, for secondary retail spaces, just 16% of surveyors expect capital values to increase, 52% believe they will remain unchanged and 32% believe they will decrease. The corresponding figures for rents are 18%, 57% and 25%. 

Commentary

Bernadine Hogan, chair of the Commercial Agency Committee, said the findings underscore the industrial sector’s dominance in current market dynamics, steady but cautious progress in offices and continued stabilisation in retail. 

“Industrial continues to lead the way, although the sentiment towards secondary industrial assets is more restrained. The office sector also exhibits overall growth reflecting ongoing recovery in prime office markets despite challenges in secondary spaces where sentiment is notably weaker.” 

“By contrast, according to the survey, retail continues to show a varied performance. While prime retail locations remain relatively stable and are experiencing modest growth as they adapt to evolving consumer habits and demand, secondary more regional assets are facing ongoing challenges.  

Ms Hogan noted that chartered surveyors identified strong growth prospects in sectors focused on essential services and residential development, while the hospitality sector was described as comparatively subdued.

“Student housing stands out with the highest projections, anticipating rental growth of 4.5% and capital value appreciation of 4.9%, driven by strong demand and constrained supply.”

“Aged care facilities also exhibit strong fundamentals, with rental growth projected at 4% and capital values rising by 4.4%, reflecting demographic trends and the need for specialised care assets.”

“Hotels are forecasted to have the most modest growth, with rental increases of just 1.9% and capital values slightly lower at 2.1%, indicating a cautious recovery in the hospitality sector.” 

Future Trends

The survey findings indicate that a substantial proportion of businesses are likely to optimise their office real estate footprint over the next two years. Almost two-thirds of agents believe businesses’ may scale back their office footprint slightly while 36% do not anticipate any reduction. 

Ms Hogan believes these findings reflect a move towards modern, higher quality and more sustainable offices. 

“Occupiers seeking to reduce space are likely to consolidate into higher-quality, well-located offices, thereby exerting additional pressure on secondary properties facing weaker demand. “ 

A substantial majority (86%) of chartered surveyors believe that tenants will increasingly demand enhanced health and well-being features in the real estate they occupy going forward, with 68% expecting that occupiers will be prepared to pay a premium for such facilities.  

Ms Hogan said it’s clear the emphasis going forward will be on enhanced facilities and sustainability. 

“In a market characterised by a national commercial vacancy rate of 14.5%, tenants are in a strong negotiating position. As such, assets offering amenities such as fitness and outdoor spaces, strong sustainability credentials, and adaptable layouts are likely to command a more competitive position.” 

 For media queries please call the SCSI at (01) 6445500 and ask for Patrick King.

Note to Editor 

The SCSI Mid-Year Commercial Property Review and Outlook Report 2025 is informed by surveys completed in June/July 2025 by Chartered Commercial and Valuation Surveyors. The report provides net balance index charts illustrating surveyor sentiment on market trends. Net balance is calculated by taking the total number of “increase” responses from “decrease” responses and displaying the result. The index charts provided are unweighted composite measures capturing overall market momentum, encompassing variables on supply, demand, and expectations. A total of 100 responses informed the latest figures within this report.

• Commercial construction tender prices increased by 1.5% in the first half of 2025

• National rate of commercial construction inflation is now running at 3% per annum

• SCSI urges Government to avail of stable rates and to accelerate investment in key economic infrastructure under the National Development Plan

Thursday 21^st August 2025: A new report by the Society of Chartered Surveyors Ireland (SCSI) shows that while commercial construction costs are continuing to rise, the rate of increase has remained relatively stable over the past two years.

The latest Tender Price Index (TPI) published by the SCSI shows the median rate of commercial construction inflation increased nationally by 1.5% in the first half of 2025, the same rate as the three preceding six-month periods.

According to the SCSI’s Tender Price Index, (TPI) which is the only independent assessment of commercial construction tender prices in Ireland, the annual median national rate of inflation for the past 12 months was 3%.

The report indicates some variation across the regions over the last six months with the highest median rate of inflation of 2% recorded in Munster and Connacht / Ulster. In Dublin the figure was 1% while Leinster (Excl Dublin) had the lowest rate of increase at 0.5%.

Fig 1. Construction Tender Prices 1998 – 2025 Research for the latest edition of this sentiment survey, which is based on responses from Chartered Quantity Surveyors from all around the country, working on commercial projects, was conducted in July and August 2025.

Analysis

The Vice President of the SCSI, Tomás Kelly described the continuing moderation in the rate of increase over the past two years as a welcome development.

“The reduction in the rate of increase which we’ve seen over the last couple of years is due in the main to reduced supply chain disruption and price volatility for construction materials. The relative stability we’ve seen over the last couple of years is in marked contrast to the 2021 / 2022 period when tender price inflation increased significantly. However, while overall inflationary pressures have moderated, ongoing geopolitical uncertainty, over conflicts and the potential introduction of reciprocal tariffs between the US and the European Union have the capacity to cause fresh supply chain disruption.”

“While we believe tender prices will continue to edge higher in the second half of 2025, given global uncertainty it is very difficult to predict if the moderate rates we have seen over the past two / two and a half years will continue. While it’s true that fears of a tariff war may be receding at the moment, that may change.”

Impact of Labour Shortages

Among other challenges identified were access to labour, with surveyors highlighting continuing labour shortages and constraints, as well as the inflation of labour prices. While overall inflationary pressures have moderated, feedback from quantity surveyors indicates that labour-related costs continue to influence tender pricing across certain projects.

National Development Plan

Mr Kelly reiterated the SCSI’s call on the Government to invest in key economic infrastructure while price inflation remains at more sustainable levels.

“We welcome the recently published update of the National Development Plan as a long-term strategic infrastructure plan of €275 billion up to 2035. The current period of tender price stability provides a great opportunity for Government to push forward with the much-needed infrastructure investment across a range of sectors.

“For example, with regard to utilities urgent investment is required in the water supply network, in wastewater treatment and in the electricity grid. Critical investment is also required across the transportation, residential and healthcare sectors.”

“We would also urge the Government to publish the sectoral investment plans in order to provide specific details of the projects and pipeline up to 2030.”

 For media queries please call the SCSI at (01) 6445500 and ask for Patrick King.

Note to Editor  

Methodology and Use of Data Notes     

The statistics extracted from our member survey were utilised in outlining the findings of this report, which is intended to give a general overview of median commercial tender price trends within Ireland’s construction sector. The Index is the only independent assessment of construction tender prices in Ireland. It is compiled by Chartered Quantity Surveyor members of the SCSI.

The TPI 1H2025 is based on sentiment returns only. The TPI is for commercial projects during the period in question. It is based predominately on new-build projects with values in excess of €1m and covers all regions of Ireland. The Index relates to median* price increases across differing project types and locations. It should be regarded as a guide only when looking at any specific project, as the pricing of individual projects will vary depending on such factors as their complexity, location and timescales. It is important that the TPI report is used appropriately and not for all construction projects, including those in the residential sector and those below €1m.

The TPI 1H2025 provides median reported figures across all project tiers; breakdowns by tier may vary. Project-specific advice should be sought from a Chartered Quantity Surveyor before deciding an appropriate TPI provision for individual construction projects. The data outlined within this report was provided by SCSI Chartered Quantity Surveyors with direct expertise and knowledge on the market conditions in the construction sectors across the country. The statistics extracted from our member survey were utilised in outlining the findings of this report, which is intended to give a general overview of median commercial tender price trends within Ireland’s construction sector.

*From 1H 2021 onwards, the median value is used as the statistical methodology.

Gerard O’Toole says state backed investment scheme could also play key role in addressing housing crisis

“Uncertainty is the word we are hearing all the time… But now is the time to focus on what we can control and take decisive action to address our housing and infrastructural deficit”

SCSI calls for greater emphasis on sustainable clustered housing in rural areas

Monday, June 9th, 2025:  The new President of the Society of Chartered Surveyors Ireland (SCSI), Gerard O’Toole, has said that the Housing Activation Office needs to commence its work urgently on clearing the many blockages which are impeding the delivery of new housing. Mr O’Toole said a central concern for the SCSI on the housing issue was the need for greater coordination across all levels of government, state agencies and stakeholders. These issues are stalling progress at a time when housing demand is critically high.

“We need to breakdown the silos which appears to exist across Government departments and agencies if we are to ensure the efficient and timely delivery of new housing and the retrofitting of existing housing, including vacant and derelict property. Hold-ups with the implementation of critical infrastructure continue to hinder progress, and a more joined-up, cross-agency approach is badly needed.”

“For example, we can see this in the rising costs, specification increases and delays associated with water and power connections. The SCSI is calling for reform of the utility connection processes and earlier engagement by Uisce Éireann and the ESB with home builders to reduce delays and prioritise essential connections for housing ready for occupation.”

“That is why we believe the terms of reference for the Housing Activation Office (HAO) must facilitate greater collaboration and transparency. Regular and effective engagement with key industry stakeholders will be key to the success of this office. But so also will be accountability and ongoing measurement of activity. If the HAO can accelerate planning and procurement processes, improve access to finance for home builders and increase the supply of serviced development land, it will be deemed a success”

State backed investment scheme

The SCSI believes the establishment of a state backed housing investment vehicle could also play a key role in addressing the housing crisis. Mr O’Toole pointed out that the state is by far the largest investor in Ireland’s housing delivery – it allocated over €5bn to housing in 2024 – but says this level of public investment is not sustainable in the long term and the state needs to explore alternative and diversified funding streams.

The SCSI believes the establishment of a specific private savings fund devoted to housing – which was initially proposed by the Housing Commission – could enable the Government to put long term multi-annual housing plans in place while also facilitating investment in much needed infrastructural projects. Mr O’Toole says the Government needs to show more urgency and act decisively.

“Uncertainty is the word we are hearing all the time, largely due to ongoing geopolitical issues which show no sign of abating anytime soon. We believe it’s now time to focus on what we can control and take decisive action to address our housing and infrastructural deficit. A savings fund of this nature would underpin long-term planning by providing the multi-annual funding commitments housing projects require. It could also support longer-term budgets for several state housing schemes, including Help to Buy, Vacant Property Grant, etc, which are often subject to annual funding reviews and decisions.”

“Irish households’ bank deposits amount to nearly €160 billion, mostly in low-interest current accounts. At the same time, access to finance remains a major barrier, especially for small and medium-sized developers. If the Government was to establish such a state backed investment vehicle – similar to the one they have in France, it would enable citizens to invest securely in future housing while also expanding access to development finance for small and medium-sized home builders.”

Proposals on the terms of reference on the HAO and the setting up of the state backed investment schemes were among several proposals made by the SCSI in a recent detailed submission on the Government’s new National Housing Plan 2025 -2030.

Clustered Development

In its submission, the SCSI said that with regard to rural housing the new housing plan should put a greater emphasis on clustered housing. It said rural housing planning guidelines in the new National Housing Plan should transition away from ribbon development towards a more ‘clustered’ rural housing delivery in the interest of proper planning and sustainability.

It said one-off development should be evidenced with a strong housing need, such as strong ties with agriculture, if seeking to build a new single home outside of ‘clusters’. The SCSI is proposing that planning authorities should compile data to identify the number of planning permissions granted for single houses in each category such as ribbon or cluster development and Government should consider implementing a maximum threshold of ribbon development permissions for each county to manage the levels of one-off houses being built in this manner.

Mr O’Toole, who was born in London but moved back to Westport when he was eleven, is founder and director of O’Toole & Co, a full service residential and commercial estate agency. Mr O’Toole, who is a fully qualified chartered surveyor and registered valuer, has held several positions within the SCSI, including Chair of the Northwest Region. He has been an SCSI board member since 2023 and became a Council member last year. He is married with four children and lives in Westport.

Commercial construction tender prices increased by 1.5% in the second half of 2023, down from 2.4% in previous six months

Chartered Surveyors say national annual rate of commercial construction inflation is now running at 3.9% down from 11.5% in 2022

Reduction in rate due to stabilising material prices, reductions in energy costs and greater competitiveness within the market

Shortages of skilled labour now the main cost driver

Thursday 1st February 2024: A new report by the Society of Chartered Surveyors Ireland (SCSI) shows that while construction costs are continuing to rise, the rate of increase eased significantly in the second half of 2023.

The latest Tender Price Index (TPI) published by the SCSI shows the rate of commercial construction inflation increased nationally by 1.5% in the second half of 2023, down from 2.4% in the first half of last year.

According to the SCSI’s Tender Price Index, (TPI) which is the only independent assessment of commercial construction tender prices in Ireland, the annual median national rate of inflation for the calendar year 2023 was 3.9%, down from the 11.5% recorded for 2022.

The TPI is recorded every six months and the fall for the preceding 12 months – July ’22 to June ’23 – was 6.2%, which shows the inflation rate has been on a downward trajectory for the last 18 months.

The report indicates some variation across the regions with a higher median rate of inflation of 2.2% recorded in Leinster (excluding Dublin) and 1.5% recorded for Dublin. Connacht / Ulster recorded a 2% increase while Munster recorded inflation of 1%, down from 3% in the first half of the year.

Fig 1. Construction Tender Prices 1998 – 2023 Research for the latest edition of this sentiment survey, which is based on responses from Chartered Quantity Surveyors from all around the country, working on commercial projects, was conducted in January 2024.

Kevin Brady, a member of the SCSI’s Quantity Surveying Professional Group said that while persistent market challenges remain, the fact the rate of increase had moderated significantly was a positive development.

“Two years ago, in the first half of 2022, the TPI recorded its highest ever 6-month inflation rate of 7.5%. So, we are clearly in a much better place now. The softening of the rate of increase is due in the main to the stabilisation of the price of building materials, reductions in energy and fuel costs along with greater competitiveness within the market. Reduced demand in some commercial sectors will help increase capacity within the industry for new projects.”

“However, in the second half of last year the market experienced continual challenges with frequent increases in financing costs, shortages of skilled labour and rising labour costs, all of which remain key issues today. Surveyors are consistently reporting the latter as the main driver behind the latest cost increases and the main challenge facing the industry at present. They say labour inflation is being driven by a combination of a shortage of skilled tradespeople and pressure from the cost-of-living crisis which is leading to increasing wage demands. The Sectoral Employment Order* increase of approximately 5% last year is also having an impact on tender levels.”

“Looking further afield SCSI members believe there is potential for geo-political issues, particularly the war in Gaza, to spread more widely and impact key supply routes, leading to additional transport costs.”

The President of the SCSI, Enda McGuane, said the latest report showed that concerted action was needed to address the skills shortage right across the construction sector.

“Given that the Housing for All targets should undergo significant upward revision in the near future, it’s also likely that the number of construction workers required to deliver the higher targets will also have to be revised upwards. We will clearly need more surveyors, electricians, engineers, plumbers, architects, and carpenters to name but a few. We need to attract more people into these roles and to develop alternative pathways to them.”

“While this will be a challenge, it also brings opportunities. Opportunities to work in new and exciting areas such as modular construction, operational data analysis or sustainability

consultancy. Opportunities also to address the gender imbalance across the built environment sector and the ongoing lack of diversity in the industry.”

Mr McGuane, who is the Asset Management Lead for the Land Development Agency, was speaking ahead of the SCSI’s annual dinner which takes place at the Clayton Burlington Hotel this evening (Thursday) and is due to be attended by over 1,300 chartered surveyors and guests.

The full Tender Price Index report is available at https://scsi.ie

*Sectoral Employment Orders (SEO) covering rates of pay, sick pay, and pensions in the construction sector were signed into legislation following acceptance by the Minister of State at the Department of Enterprise, Trade and Employment, of recommendations from the Labour Court.

For more information 

Contact Kieran Garry 

GPR Communications 

087/2368366 

  [email protected]  

Methodology and Use of Data Notes  

The data outlined within this report was provided by SCSI Chartered Quantity Surveyors with direct expertise and knowledge on the market conditions in the construction sectors across the country. The statistics extracted from our member survey were utilised in outlining the findings of this report, which is intended to give a general overview of median commercial tender price trends within Ireland’s construction sector.

The Index is the only independent assessment of construction tender prices in Ireland. It is compiled by Chartered Quantity Surveying members of the SCSI. The Tender Price Index (TPI) 2H 2023 is based on sentiment returns only. The TPI is for commercial projects during the period in question. It is based predominately on new build projects with values in excess of € 0.5m and covers all regions of Ireland. The Index relates to median** price increases across differing project types and locations. It should be regarded as a guide only when looking at any specific project, as the pricing of individual projects will vary depending on such factors as their complexity, location, and timescales.

It is important that the Tender Price Indices report is used appropriately and not for all construction projects, including those in the residential sector and those below €0.5 million. The Tender Price Index 2H 2023 provides median reported figures across all project tiers, breakdowns by tier may vary. Project specific advice should be sought from a Chartered Quantity Surveyor before deciding an appropriate TPI provision for individual construction projects.

**From 1H 2021 onwards, the median value is used as the statistical methodology.

The post Tender Price Index 2024 – Press Release appeared first on Society of Chartered Surveyors Ireland.

The main findings: 

• SCSI members expect residential property prices to increase by an average of 1% in 2024

• 63% of agents believe prices are either at peak or close to it and will level off soon

• Survey finds 36% of sales instructions in Q4 were landlords selling their investment property – down 4% on last year

• 76% of agents are reporting a shortage of supply – an increase of 10% on last year

• Case studies show new homes are affordable for first time buyer couples on combined gross income of €89,000 in most parts of the country – but in Greater Dublin Area the unaffordability gap is €62,000 – In Galway its €22,000

• The Northwest, Midlands and Southeast are the most affordable regions for first time buyers

• Just over a decade after they were introduced, 69% of agents say BER ratings are now an important or very important factor in relation to the level of an offer

• Upcoming change of Government / change of policy cited by some respondents as an issue in the elevated sales of buy to lets and a factor affecting future house prices

Tuesday 23^rd January 2024: A new survey by the Society of Chartered Surveyors Ireland indicates residential property prices will continue to stabilise in the medium term with estate agents forecasting an increase of just 1% in 2024. Almost two out of three respondents (63%) believe property prices have either peaked and should start to decline or are close to peaking and will level off soon. The report found the main factors influencing expectations of house price movements are the supply of housing, interest rates and changes in the economy.

Case studies compiled as part of the survey – see below – show that while new 3 bed semi-detached homes are affordable for first time buyer couples with combined gross earnings of €89,000, they remain out of reach by tens of thousands of euro for first time buyers in the Greater Dublin Area.  This means that in Dublin, Wicklow, Meath, and Kildare the affordability gap is about €62,000, in Galway its €22,000.

The case studies, which are based on a couple employed as public servants – a garda and a nurse with ten years’ experience – indicate that the Northwest, Midlands, and Southeast are the most affordable regions for first time buyers.

John O’Sullivan, Chair of the SCSI’s Practice and Policy Committee said that after several years – during and immediately post covid – where the market experienced double digit price increases, it looks now as if prices are set to consolidate for the medium term.

“SCSI agents believe we will see modest growth in values in what will most likely be another challenging year for the property market. Three out of four agents or 76% of respondents are reporting a lack of supply to meet demand, that’s up 10% on last year. So, while price inflation has been dampened following the dramatic rise in interest rates, they have also been underpinned by the lack of supply.”

“That said prices are levelling off below current inflation rates and this is a welcome development for potential buyers as their purchasing power will increase as affordability improves. While the current supply of new homes is undoubtedly insufficient, SCSI agents say initiatives aimed at increasing supply are kicking in and that the situation will improve in the coming years. While this is most welcome, the skills shortage in the construction sector remains a critical issue which needs to be addressed.”

“Interestingly after supply, interest rates and the state of the economy, the fourth factor which members say will influence price movements is a potential change in Government and or housing policy. We know there is going to be a new Government in the next 14 months or so and some members are clearly picking up on the need to build on progress to date and to avoid knee jerk policy shifts which could introduce uncertainty into the market.”

Rental Market

The SCSI’s Annual Residential Review and Outlook report – now in its 41^st year – also found that one in three of properties coming on the market are buy-to-lets. On average 36% of residential sale instructions to agents in Q4 were landlords selling their investment property. While this is down 4% from last year, Mr O’Sullivan said it shows investors and landlords are continuing to exit the market in very significant numbers.

“While new taxation measures announced by the Government in Budget ’24 aimed at encouraging landlords and investors to remain in the market are only being implemented now, SCSI agents are saying the main reason rental units are continuing to come on the market in such numbers is that rent legislation is too complex and restrictive. The other reasons given are a potential change in Government / housing policy, net rental returns being too low, coming out of negative equity and pressure from lending institutions to liquidate assets.”

“We will have to wait and see what impact the new taxation measures will have but for now its clear landlords are continuing to exit the market in substantial numbers. And with mortgage approvals for residential investment lettings down 20% year on year, it’s clear those leaving are not being replaced in the same numbers by new investors. This in turn is going to affect the number and choice of rental units available on the market and contribute to higher rents.”

Sales not proceeding

There has been a steady increase in the proportion of SCSI agents reporting that sales are not proceeding. In the survey 27% of agents said there had been an increase in the numbers of sales not proceeding while 63% of agents reported that the level of sales not proceeding remained the same as the preceding six months, when the issue first came to prominence.

In its analysis the SCSI noted an increasing prevalence of members reporting significant frustration regarding delays within the probate process and in contacting the probate office. Agents highlighted challenges regarding an inefficient and lengthy conveyancing process and how this is impacting on sales as well as other issues such as planning irregularities, non-compliance with building regulations and boundary challenges.

Growing importance of BER Ratings

It is now just over a decade since Building Energy Ratings were first introduced and the SCSI thought it timely to ask about them and their impact on the sales process. Members believe there is a widening price gap between energy-efficient homes – rated B or higher – and their less efficient counterparts – rated C or lower. This is due to the time and costs required to pay for refurbishments to the latter, despite the availability of grants.

In the survey 69% of agents said they believed BER ratings are an important or very important influence on the level of offer made on a property.

Mr O’Sullivan said that while they started out initially as a mere footnote on property brochures, they were now front and centre in buyers’ thoughts.

“This is due to heightened environmental awareness, the recognition of the pressing need to tackle climate change, rising energy costs and the attractiveness of green mortgages with lower interest rates. Today energy-efficient homes are among the most coveted property types with some research putting their value circa 25% higher than non-efficient homes. It’s clear that trend is going to intensify.”

SCSI New Home Affordability Tracker

The average market value of a new three-bedroom semidetached home in the Greater Dublin Area (GDA) is €464,036 as reported in the SCSI Real Cost of New Housing Report 2023.  Using figures from that report, these case studies examine affordability within the scenario of a couple who are first time buyers and employed as a garda and a nurse. The average combined gross incomes of two professions (with 10 years’ experience) in Ireland, is €89,000. Clearly there will be differences for buyers whose earnings fall below or exceed this level.

For these case studies their total LTI maximum loan limit is €356,000 (4 times gross salary). For those who earn less than this income level, the disparity between their borrowing capacity and the cost of purchasing a property will be even greater. As of December 2023, the GDA is the most unaffordable followed by Galway.  The most affordable locations are the Northwest, Midlands and Southeast.

Mr O’Sullivan said that whilst a more stable market with values levelling off will assist those wishing to purchase a home, the increasing construction costs, and uncertainty of where such costs will be in the future poses questions for the future viability of new projects. “Right now, new housing is most viable in the Greater Dublin Area, and this is where its most unaffordable. In very many cases the areas where new home building is least viable are the more affordable areas, such as the Midlands and Northwest.  To restore balance to the property market we need to ensure there is an adequate delivery of new housing through other avenues such as AHBs, via the Land Development Agency and through direct public housing delivery etc.”

Table 1. Affordability of purchasing a new three-bedroom semidetached home. Scenarios are based on combined gross wages of a garda / nurse couple with ten years’ experience or two civil servants at executive officer level with circa 9 years’ experience.

Note. Figures exclude First Homes Ireland Scheme. Help to Buy Scheme assumed to be included within the 10% deposit amount. Source SCSI The Real Cost of New Housing Delivery 2023*

The SCSI’s Annual Residential Property Review and Outlook Report 2024 is available at www.scsi.ie or on request. 

---

For further information 

Contact Kieran Garry 

GPR Communications 

087/2368366 

[email protected]  

Note to Editor

*The SCSI Real Cost of New Housing Delivery 2023 report  provides multiple recommendations to increase new supply and reduce the costs of delivery to improve affordability, such as:  removal of development levy costs; setting clear targets for constructing new units via modern methods of construction; and, design flexibility: allowing local authorities to approve alterations to specifications of buildings that do not materially alter the planning permission but allow for the use of more cost-effective building materials.

About the Survey

The SCSI Annual Residential Property Review & Outlook 2024 is a sentiment report, which is informed by the professional opinion of over 140 SCSI agents across the country and bring together their insights and local knowledge on Ireland’s sales and rental market. The questionnaire was completed by SCSI members in December and January.

The post SCSI Annual Residential Property Review & Outlook 2024 – Press Release appeared first on Society of Chartered Surveyors Ireland.