In the boom years when Ireland’s “Celtic Tiger” economy roared, cheap, readily available funds enabled billions of dollars to be ploughed into property in the Emerald Isle.
When the bubble burst, Ireland became Europe’s sick man. In 2010, the government turned to European authorities and the IMF for financial relief, asking for a rescue package valued at $135 billion at the time.
Since then, Ireland has made impressive progress, rebuilding its economy into the posterchild for austerity. There’s still a long way to go until it’s given a full bill of health, but the Irish economy grew by 7.8% last year—the strongest expansion of any advanced economy.
What does this mean for Ireland’s luxury housing market?
Recovery has been slow, according to Peter Kenny, an agent at Knight Frank in Dublin, particularly among domestic buyers. Most of his inquiries are coming from expats.
“The majority are returning Irish — people who have made a lot of money abroad and coming back with sterling or dollars to take advantage of an attractive exchange rate,” he said.
Second- or third-generation Irish-Americans are also taking advantage, particularly on Shrewsbury Road and Ailesbury Road in Dublin. In 2007, before the property crash, the former was the fifth-most expensive street in the world. Lavish penthouses in Dublin’s posh D4 zipcode, which have attractive rental yields — useful investments for expats until they decide to move back home — are also in high demand.
It’s a similar story in Ireland’s country house market. Roseanne De Vere Hunt, a director at Sherry FitzGerald, an agency specializing in country houses and farm estates, told Mansion Global her number one buyers are American. Since the start of the year she has had about 120 inquiries from the U.S.
Glin Castle, a mansion overlooking the Shannon estuary in Ireland, has belonged to the same family for 700 years.
Sherry FitzGeraldA chunk of those were in regards to Glin Castle in Co. Limerick, an 18-bedroom property selling for $7.2 million. Castles do not come onto the market very often in Ireland and especially not this level of quality, according to De Vere Hunt.
Overall stock in Ireland’s luxury residential sector is very low, in large part because a number of the large estates were sold by banks and liquidators. Compounding the problem, many sellers can’t afford to move because of the central bank’s new stringent lending rules.
“Banks aren’t lending freely. For a normal functioning market, we need 5% to 6% of stock on the market at any time. In 2010 we had 3%. Now we have 1.4%,” said Knight Frank’s Kenny. “That’s a dramatic difference in stock levels.”
One might think low inventory would lead to properties being snapped up. “That’s not happening because of the lack of available finance,” said Kenny.
His advice? If you have the money and don’t need a mortgage, it’s a good time to invest in Ireland.
On the Market in Ireland
FERMOY, COUNTY CORK
PRICE: $28.28 million
BEDROOMS: 10
BATHROOMS: 12
This Georgian mansion on 150 acres—known as Castlehyde—commands sweeping views of the Blackwater river. The restored house was built in 1801, and was the home of Douglas Hyde, a leading figure in the Gaelic League who served as Ireland’s first president. The nearly 35,000-square-foot home features 10 reception rooms, an indoor swimming pool, tennis court and golf course.
DALKEY, COUNTY DUBLIN
PRICE: $4.95 million
BEDROOMS: 6
BATHROOMS: 12
Dalkey is arguably one of Dublin’s poshest neighborhoods. Tucked away off Castle Street, the 6,421-square-foot home known as Tudor House dates back to 1845, and features period details and manicured gardens. Famous neighbors include U2’s Bono and the late Irish novelist and playwright Maeve Binchy.
SHINRONE, COUNTY OFFALY
PRICE: $2.83 million
BEDROOMS: 8
BATHROOMS: 2
This Georgian mansion with historic ties sits on 120 acres peppered with cottages, greenhouses and staff quarters. An additional 165 acres is also available for purchase. The estate is a short drive from the village of Moneygall—home to distant relatives of President Barack Obama—where the First Family was famously received with great fanfare in 2011.
BLACKROCK, COUNTY LOUTH
PRICE: $2.47 million
BEDROOMS: 5
BATHROOMS: 1.5
This traditional country house in Blackrock in County Louth boasts a tennis court, picturesque gardens and impressive views of Dundalk Bay and the Cooley Mountains. Sandymount House also offers a two-bedroom Gate Lodge, an excellent addition to the property.
RATHMINES, COUNTY DUBLIN
PRICE: $2.12 million
BEDROOMS: 4
BATHROOMS: 2 full, 2 partial
This Victorian residence is just a few minutes from Rathmines, a suburb on the southside of Dublin. (Celebrated novelist and poet James Joyce was born in nearby Rathgar.) Dating to the 1860s, the property was renovated with a blend of period features and contemporary finishes. The three-story home totals just over 3,000 square feet and features a glass hallway leading to the gardens.