The lack of supply for three-bedroom houses is fuelling a buying frenzy in the city, with an average of ten people fighting for each property that goes on the market, insist real estate agents.
The latest national survey carried out by Real Estate Alliance (REA) has found that the price of the average three-bed semi in Galway City rose by 2.9% in the first three months of the year and by 10.4% to €265,000 in the past year.
“There is strong demand across Galway City,” insists Robert McGreal of REA McGreal Burke.
“Some new developments are coming on stream. Currently, there are ten buyers for every home coming to the market.”
That’s also the experience of the biggest real estate agents in the city, O’Donnellan and Joyce, which predicts rising prices for at least the next 18 months until more homes are completed.
“It’s certainly the same for us, especially for three and four-bedroom homes which are being sought after by first-time buyers and younger buyers who are competing with cash-rich investors,” Colm O’Donnellan told the Galway City Tribune.
“There is just a very limited amount of new builds going on Galway and supply won’t change in the short therm. There are some major builds happening – Burkeway in Barna, O’Malleys in Roscam – but that’s going to take one-and-a-half to two years to make a difference.
“I would say houses have gone up in price between €30,000 and €40,000 from a year ago for this type of house [3-bed semi-d] in the most sought-after locations, close to schools – places like Knocknacarra, Salthill, Renmore, Doughiska.”
But all is not lost for those seeking their own pad in town.
“First time buyers are getting credit – there are opportunities out there. Bohermore is very popular and affordable. In Renmore and Knocknacarra you can still get a good home for under €300,000 – these are very good established areas.”
■ For more on this story, see the print edition of the Galway City Tribune.
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