“Covid Effect” continues to drive up Irish house prices

The sharp increase in Irish house prices over the past year could continue in the near future, analysts say. In a recent survey of estate agents, four out of five surveyed predicted that national property prices would rise in the next year. The same survey also found that prices in some regions could rise by as much as 7 percent.

However, the rise in prices is most significant outside of Dublin. While experts predicted a rise of 4 percent in Dublin, a sharper increase is projected in areas outside the capital city. In Leinster, the rise is expected to be 6 percent, and prices are expected to increase by as much as 7 percent in Munster, Connacht and Ulster.

The Society of Chartered Surveyors Ireland (SCSI) and the Central Bank of Ireland Residential Property Price Survey was conducted in May, surveying over 200 estate agents. In this survey, the estate agents blamed the higher price forecast on homes outside of Dublin on the “covid effect”. The experts said that covid lockdowns and remote work situations have increased the attractiveness of …

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Irish Households’ savings at record levels

Irish households saved more than 4 times the average amount during the first quarter of 2021, according to a recent study by the Central Statistics Office (CSO). The CSO reports that Irish households saved more than €10 billion during the first three months of 2021.

This massive increase in savings was undoubtedly related to Covid-19 and it’s corresponding economic restrictions. Due to businesses being closed because of lockdowns, government unemployment benefits, or some combination of the two, incomes either held steady or increased, while spending was dramatically decreased. The CSO also reported that uncertainty about the pandemic and how long the lockdowns would last may have forced many Irish citizens to build up an increased amount of precautionary savings, in case money became tight in the future.

When looking at the numbers, it is no surprise that savings grew dramatically when compared to the first quarter of 2020. Compared to the first three months of last year, Government subsidies increased by €1.1 billion, and social protection payments rose by an even larger margin of €2.7 billion.

While the Pandemic Unemployment …

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Lockdowns cause surge on home improvement spending in Ireland

The coronavirus pandemic created many unforseen circumstances in people’s daily lives. Perhaps the biggest among these was the effects of the lockdown. People had to stay in their homes for much longer than they normally would, and many people were stuck working at home. It is no surprise, then, that a record number of home improvement projects have been carried out over the last year and a half.

Research by Aviva Insurance Ireland shows that 1.5 million homeowners have carried out work on their homes over the past year, with the total cost of these projects coming in at more than €11 billion. In addition to these numbers, another 861,000 people have plans to undertake home improvement projects, the survey says. The survey captured almost every type of home improvement imaginable, from minor fixes like painting a room or replacing windows, to large projects like building extensions onto homes or adding a home office, the latter of which was definitely popular as the country and the world transitioned to a remote work environment.

Aviva Insurance added that this surge in …

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How has remote working affected rent prices in Ireland?

Because of the pandemic, so many people across Ireland have transitioned to remote work. While reopening is underway, it will still be some time before the majority of the workforce is back in their offices. During the pandemic, many people who lived and worked in major cities like Dublin found themselves returning to their home counties due to the opportunity to work from home. The Residential Tenancies Board (RTB) has found that a trend may be beginning with this movement of people away from urban centers due to covid-19.

Rents have increased across the State in the first three months of 2021 when compared to that same time period from last year. But perhaps as a reflection of people’s shift to remote work, rents have seen their sharpest increases outside of Dublin. During the first three months of the year, rents as a whole have seen a rise of 4.5 percent compared to the first quarter of last year. The nationwide average rent in euros for this quarter comes out to be €1,320, an increase of €33 when compared with …

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Will Ireland’s mortgage rates fall or rise after the pandemic?

Ireland’s high-interest rates have long been an issue. Although some financial and legal concerns will ensure that they remain above average, overall interest rates may and should be reduced. New and existing borrowers might save thousands of dollars in interest payments throughout their mortgage. This is especially true for existing borrowers who are already paying interest rates of 3 to 3.5 percent. Many people may convert to rates closer to 2%, saving them a lot of money throughout their loan. According to Brokers Ireland, Irish mortgage holders now pay more than twice what most of their competitors do.

The NTMA increased its borrowings for Ireland at negative interest rates for seven and ten years, keeping interest rates on international markets at historic lows. Still, borrowing costs in Ireland are always in line with those in the rest of the EU; mortgage rates are still generally low. Because of the present recession, interest rates have been maintained low. But how long can it go on? Is this a paradigm shift for us?

The following are the most crucial points: Maintain …

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Why Supporting Irish-owned business will be a key to pandemic recovery

As Ireland continues to emerge from the COVID-19 pandemic, its entrepreneurs and family owned businesses will play a huge role in the jobs-led recovery of the economy. The resilience of Irish businesses over the past year and a half has been remarkable, dealing with the challenges of both Brexit and the pandemic while continuing to innovate and make new strides in sustainability and digital transformation. Currently, the Government is targeting a eight to ten percent unemployment rate for next year, down from the current 22 percent rate. It also wants to see 2.4 million in unemployment by 2024, which is significantly higher than pre pandemic levels. KPMG tax partner Olivia Lynch believes that Irelands entrepreneurs, family owned businesses, and small business will be crucial in helping the Irish economy to recover and meet these goals. Lynch also leads KPMG’s private enterprise sector and believes that the Government is aware of the need to support these types of businesses moving forward.

Small businesses and entrepreneurships are a critical part of the backbone of Ireland’s society and economy. Lynch says “There …

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