Dublin’s skyline has welcomed several prominent new residential buildings over the last year, including 143 Merrion Road and Shore Club in Dublin 4, 55 Lad Lane in Dublin 2 and completing shortly, The Pinnacle in south Co Dublin’s Mount Merrion.
So, who’s buying apartments and penthouses and why? Dublin apartments in prime locations are still somewhat rare, and penthouses even more so, but these new developments have been attracting a variety of buyers, including downsizers, young professionals working in the city, parents buying for older children studying in Dublin, new residents relocating to Dublin and rental investors, particularly pension investors helping to increase the supply of rental properties available.
Buyer’s priorities, motivations and attitudes have been evolving, particularly over the last five years. Energy efficiency is now very high on the priority list which is a key driver of demand for new A rated apartments and houses with many moving from older, less efficient homes. Buyers are increasingly concerned with their home’s carbon footprint and environmental responsibility. This includes selecting a home where car ownership isn’t required.
Easy maintenance is a key driver of demand for new A rated apartments and penthouses with buyers choosing to reduce the responsibility of ongoing repairs and particularly garden maintenance. This has become even more important over the last year as supply chain issues and inflation have affected the ease with which individual households can carry out home maintenance and renovations.
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Accessibility, both within the individual home and building but also the immediate surrounding areas, is increasingly important. Knight Frank data on buyers shows that a high percentage are looking to future proof with their next purchase, making sure that there are in some cases, lifts, level access to main bedrooms, maintenance free outside space as well as local shops, restaurants and coffee shops within walking distance to reduce their need for reliance on driving everywhere.
Security is an additional factor for many purchasers who want to live in a secure development, some of which offer on-site security or concierge services. Many who are downsizing/rightsizing or who travel for work prioritise being able to travel for long periods of time secure in knowing that building management services are taking care of security and maintenance while they are away.
Wow factor is also a significant element in the decision on which home to buy – whether that is waking up to morning coffee with a view across Dublin Bay from your private terrace or heading downstairs for a workout in the resident’s gym, each buyer has a different top priority. The common element generally includes something that they have always wanted to have that their previous family homes or rentals have not offered.
Re-emerging demographics include parents buying apartments for children studying and pension investors.
The continued shortage of dedicated student accommodation as well as private rental properties has forced many people to change their original plans. When considering both the cost and challenges of renting in Dublin, some families are opting to combine long term investing in an apartment that serves as accommodation for their older children’s higher education initially.
Additionally, the extreme shortage of private rental accommodation is also attracting pension investors to buy apartments, taking advantage of the associated tax incentives whilst helping provide much needed rental homes to the Dublin housing market.
It’s an exciting time for Dublin with an expanding offering of design focused apartments and penthouses to choose from.
If you are considering buying an apartment in Dublin, visit knightfrank.ie to register or call Knight Frank New Homes on +353 1 237 4500. PSR Reg. No. 001880.
