Whether you are buying or selling, there are numerous attributes to consider that can potentially increase the value of a property. In this article, we look at what recent housing reports have to say on the value of property on the housing market in Ireland today. In addition to this, we also discuss traits that are generally more favourable in a home and therefore improve the demand, such as a south-facing garden, privacy, and security. These all have the potential to boost the value of a property and can be useful to consider when you are planning your budget.
Traits that can increase the value of a property include:
- Floor area/Space
- Type of property; i.e., detached, end-terrace, penthouse
- Proximity to public transport
The location of the property is an obvious factor of its value. For example, the most recent House Price Report from Daft.ie shows that that average asking price for a house in Co. Galway is €198,850. Whereas, in Galway City, this figure increases considerably to €296,610.
A notable determinant in this price difference is proximity to amenities, such as grocery shops, good infrastructure, the presence of jobs, etc. These will be easier to access in a city in comparison with a rural area.
Another example of this can be seen in the prices in areas close to Dublin compared with those that are outside of the commuter belt. The average price in Kildare is €264,193 while in Donegal it is €141,285. Closeness to amenities and the busy hub of Dublin is a major factor when it comes to property value.
Floor Area, Type of Property, and the Garden
The size and floor area of a property is going to be taken in to account when it is valued. A large, four-bedroom house with a decent garden is going to be more expensive than a small, two-bedroom apartment with no balcony or private garden. The report from Daft.ie found that a one-bedroom apartment in Dublin 14 has an average value of €256,000. In comparison, a three-bedroom semi-detached is €485,000.
A detached house at 70m2 will likely have a higher price than a mid-terraced house with the same floor area. Properties that are not attached to other buildings offer more privacy and space. This is often more desirable, thus why end-of-terrace houses generally have a higher asking price than ones in the middle of the terrace.
With regards to apartments, a ground floor property that looks directly on to a road or street and has no balcony access will not have as much value as those on the upper floors. A large penthouse on the top floor with plenty of private balcony space will be among the most expensive in the building. The upper floors will not experience as much noise from the traffic and surrounding area. They are also more likely to have better views. These are all attributes that will effect the value of the property.
A large garden is a good feature to a property because not only does it provide more private space to the occupant, it also offers the opportunity to extend the building and provide more interior space. This potential adds value.
Similarly, the most popular aspect for gardens are those that face south or southwest. These gardens will be facing the sun and will provide plenty of year-round sunshine for the rooms overlooking the garden. Choosing plants will be easier because you won’t have to stick to those that thrive in shady areas. Due to a much higher demand, a garden with a sunny aspect will consequently add more value to a property.
Proximity to Public Transport Lines
In Dublin, properties close to the LUAS and DART lines will typically see an increase in asking prices. Daft’s ‘Light Rail House Price’ report, published at the beginning of 2019, sites a significant overall average increase of 34% in two and three-bedroom property prices situated close to these transport lines.
This report shows that a close proximity to the DART or LUAS lines will increase prices in areas that already have high values. The most expensive houses along the DART south line are in Sandymount, with an average of €870,000. On the LUAS Green line, houses close to the Ranelagh stop average €741,000.
They also included information on prices around the planned route for the MetroLink stations, which are proposed to be running by 2027. They estimate that these plans will lead to a higher demand for properties close to the transport line. The MetroLink will offer a major connection from Dublin Airport to existing LUAS and DART routes via the city centre. With an improved, high frequency public transport system in Dublin, it may make the properties along these routes even more valuable in the future.
Energy Efficiency, Modernity, and Security
Other factors such as good energy efficiency in a modern build will add worth to a property. An A-rated house can save a considerable amount of money on heating and electricity bills in a year, let alone over the course of five or ten years. Purchasing a property with an excellent Building Energy Rating will mean that there is no need for any expensive and time-consuming upgrades to be carried out.
However, older builds don’t always have lower asking prices. A well-maintained property can hold on to, or even increase, its value, no matter what age it is. A small, terraced house that is in good condition can produce plenty of demand on the market. Original features that have been maintained are positives. Updates to the wiring, plumbing, and insulation can all increase the value too.
Security is another factor that can add value to a property. An apartment in part of a secure, monitored complex will produce good demand. As will houses with security gates, fitted alarms, and secure fencing. Providing a safe place to park a car is also important.
If you are looking to purchase a house and are uncertain about how your budget meets your preferences, a buyer’s agent can help. At Eldron, our knowledge of the market in various areas of Dublin and Ireland means that we can offer informed advice during your property search. We will be able to identify the traits of a property that are either adding to or reducing its value and how this works with your budget in the present as well as in the future.
These aspects can also add to the rental value of a property. For our Investor Service, we take this in to consideration when searching for an appropriate property in order to ensure the client receives a good yield.
If you are interested in any of our services at Eldron Property Consultants, request a free consultation and we will get back to you to arrange a suitable time.