DNG Frank Regan reports strong sales throughout 2016. Frank remarks that with the return of competitive bidding for all types of property, especially well-located residential and commercial holdings, prices achieved were way above the asking prices.
Most of this demand came from cash purchasers – owners and investors – including many UK/USA based Irish nationals. Land prices remain somewhat static due to the lack of funding by the major clearing banks. On the plus side, demand for land suitable for forestry has increased by up to 15%, especially for parcels in excess of 40 acres.
Some large investors and pension trustees have become active in buying to satisfy long-term returns for their clients. Residential prices rose on average by 16.8% during 2016, depending on type and location, and Frank confidently predicts continued gains in the region of 10-15% during 2017.
Mindful that the market hit rock bottom prices in 2012-2013 period, today property offers excellent returns on your investment when compared with government bonds and deposit interest rates at nearly 0% returns. With the ECB continuing with Q.E. policy, interest rates are predicted to remain low for the next few years. With property values still well below the cost of construction, property continues to offer the best value for money, so 2017 is probably your last chance for a great bargain.