The last nine years have seen property prices in Galway “increase by “172%”, following their lowest point after the 2008 financial crash. While this is good news for those who currently hold real estate, it presents a problem for people looking to get onto the property ladder themselves.
According to figures released at the beginning of the year by the Central Statistics Office, the average sale price of residential property in Galway is now over €320,000. This is a big increase from average prices in 2013, which were around €185,000. Because of this, buying a home isn’t realistic for a lot of people, but it does offer an interesting opportunity for real estate investors.
While prices can’t continue to rise forever, the market looks set to continue this trend as long as demand outstrips supply. Even with new properties being built, it still isn’t enough for prices to come down, and investing in real estate remains highly popular in Galway and across the country.
Real Estate Investing
One of the main reasons why property prices are rising in Galway is due to the growing number of people investing in both residential and commercial real estate in the city and surrounding areas. More people are looking to save for the future, and real estate is seen as a relatively safe and stable long-term investment.
Those who are looking to get into investing can benefit from a real estate online course. Studying the real estate industry can make it easier to identify investment opportunities in all areas of the market. This offers insights into how to find properties and build a property investment portfolio that will grow over time.
Galway has a growing reputation as a tourist destination for people across the world, with a mild climate, beautiful countryside and historic towns. It’s also the least densely populated county in Ireland, and during the summer months, there are plenty of festivals and events that help attract tourists. This has led to a growing holiday property market, with many properties now bought up to rent as holiday accommodation or to convert into hotels.
Lack of Available Land for Construction
The main way to bring down property prices and ensure that more families can own their own homes would be to build new houses. However, this isn’t as simple as just building. Land has to be properly zoned by councils, and new developments need to be approved by local people. Despite being the least densely populated county in Ireland, there’s a lot of pushback from residents.
Within the city, there’s a lack of available land. Outside the city, some people are worried about how new construction projects could affect the area. People who already own homes aren’t concerned about rising property prices as it actually benefits them. In addition, there are concerns about how new housing developments could affect the rural countryside image of Galway.
Cost of Living and Increased Rent
The cost of living crisis is affecting most of Europe and other parts of the world as rising inflation affects the cost of all things. As inflation has made the cost of buying everyday items more expensive, it’s also been affecting property prices. Landlords have been forced to raise rents, and higher rents are also making it more difficult for people to buy new homes. Sites like Renthero have the latest rental prices and available properties in Galway.
The result is that investors are often the only people who can afford to buy, leading to an inflated market as more properties are rented out. Galway is becoming a more expensive place to live, and unless the local government acts, prices will continue to rise and become costly for ordinary people.
