The time when Ireland was among the hottest real estate markets in Europe may be over, but the country still has something to offer for those who look for UK cheaper market alternatives. Dublin is less expensive than London by 20-25%, prices in Ireland in general are 30-35% lower than England and Wales. The growth rates are far from the records set in late 1990's but for a mature market they are more than enough if investors are concerned more with grater stability than with higher returns. The slowdown of market development within more reasonable numbers is good news for those who some years ago feared burst similar to that on the world stock exchanges. Golden Age may be over but Silver Age is about to begin.

Irish economy has again shown excellent signs after 3-4 years of uncertainties following the stock exchange crashes and 9/11 terrorist attacks. Last year it has grown by more than 6% and the forecasts for the next year are similar if not brighter. After a brief period between 2000 and 2003 when some multinational companies left the country or reduced its activity, Ireland today is again attracting new residents. Lucent Technologies recent decision to set up a Bell Labs R&D center in Ireland is only one example of this increased international interest.

Last year was a good period for the maturing Irish real estate market. Prices in the country have gone up by 14-15%, which is more or less similar to the previous 12-month period. In Dublin as usual for the last decade the growth was little higher than in rest of the country. Since May 2003 the average house in Ireland has become more expensive, passing to 245,000 Euro, in Dublin reaching 360,000 Euro. In general the resold houses' prices went up much quicker than the new developments. This is bad news for many developers who may reconsider their activity in short-term. The forecasts for 2004 and for first half of 2005 are good, with prices going up by another 14-15% or even more. Possible correction may come in case of serious market deflation in UK, and Ireland losing its relative price advantage over its big eastern neighbor.

Due to the common European currency used as national legal tender in Ireland, during the last 12 months the market was particularly interesting for American investors because of the relative dollar devaluation. This devaluation reached 8-10%, which represented more than 20% annual return. Unfortunately this artificial leverage attracting American investments will no longer play in favor of the foreigners. American interest rates have gone up because of the strong economic performances across Atlantic. In Europe when interest rates are still higher than in the USA, central bank sees no inflation dangers and thus is reluctant to follow the American example shortly. Stronger dollar and weaker Euro will reverse the investment tide towards America. On the other hand, the continuing policy of low interest rates across the Euro zone will allow for a soft instead of hard market landing even if UK market begin showing signs of strain.

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See also the directory of companies providing real estate services in, and general real estate information of Ireland.