Remote Work's Influence on Housing Demand

Before the pandemic, the majority of people in Ireland worked from offices located in major urban centers like Dublin, Cork, and Galway. However, with the shift to remote and hybrid working models, the need to live near city centers for daily commutes has decreased dramatically.

Key trends emerging from this shift:

• Demand for Homes Outside Dublin:
  According to the Irish Times, the demand for homes in rural and suburban areas has surged as workers no longer need to commute into the city daily. Research from Daft.ie shows that house prices in counties like Wicklow, Kildare, and Meath have been steadily increasing due to people relocating for better quality of life, more space, and affordability compared to the Dublin market.

  • Source: Daft.ie, Q2 2021 Report

  • This trend has allowed many homeowners to purchase larger homes for the same price they might pay for a smaller city-center apartment.

• Interest in Coastal and Countryside Living:
  The notion of "working from anywhere" has allowed many to reconsider where they live. The Irish Independent highlights that areas along the Wild Atlantic Way, including counties Kerry and Clare, have seen an uptick in property interest, as more people desire scenic locations that offer a slower pace of life but still offer strong internet connectivity.

  • Source: The Irish Independent, June 2021

Shifting Property Preferences

As remote work changes lifestyles, property preferences have also evolved. Buyers are now prioritizing different aspects of a home compared to the pre-pandemic era.

• More Space for Home Offices:
  Remote work has made home offices a necessity. Many homebuyers now seek properties that offer extra rooms, dedicated office spaces, or large gardens to accommodate home-working needs. The Irish Property Buyers report reveals that properties with flexible workspaces are in higher demand, as families adjust to long-term remote working and homeschooling.

  • Source: Irish Property Buyers, 2021

• Desire for Larger Homes:
  In a post-pandemic world, smaller city apartments are becoming less attractive compared to suburban or rural homes with larger square footage. Buyers now favor properties with more rooms, gardens, and proximity to outdoor activities. This shift has increased the popularity of properties in towns and villages where space is more abundant, and the cost of living is lower.

The Growing Appeal of Hybrid Work and Suburban Living

Hybrid work models — where employees split time between home and office — have become increasingly popular. With more flexibility on when and where to work, many people are no longer tied to city centers for job-related reasons.

• Suburban Expansion:
  The Dublin commuter belt has seen an increase in interest, as workers can now live in suburbs or smaller towns and only commute to the city a few times a week, or not at all. According to Sherry FitzGerald, this shift is contributing to the growth of new housing developments on the outskirts of cities, where people can still enjoy the benefits of urban living while taking advantage of larger homes and lower property prices.

  • Source: Sherry FitzGerald, 2022 Housing Market Review

• Decrease in Demand for City Center Rentals:
  The demand for city-center rental properties has also seen a decrease. Daft.ie recorded a drop in rental prices in Dublin's city center, with many renters opting for suburban areas that offer more space and often lower rents, as they no longer need to be within walking distance of their workplaces.

Long-Term Implications for the Irish Property Market

The shift to remote work is expected to have lasting effects on the Irish property market. The increased demand for rural and suburban homes could drive long-term price growth in these areas. However, challenges remain.

Increased Demand in Regional Markets:
With more people considering relocation outside of Dublin, regional cities such as Limerick, Waterford, and Kilkenny may see a rise in housing prices and demand. This decentralization could help address the housing crisis in Dublin, alleviating pressure on the capital’s overcrowded market.

• Source: SCSI, Housing Market Outlook 2021

Challenges for City-Center Developers:
As demand for city-center properties wanes, developers will need to reconsider the types of properties being built. Office-to-residential conversions may become more common as businesses scale back their office requirements, and cities adjust to the new way of living and working.

Conclusion

Remote work has undeniably reshaped Ireland's property market, influencing buying decisions, rental trends, and overall demand. As more people embrace flexible working arrangements, there is a clear shift toward suburban and rural areas, leading to increased demand for larger homes with more space and access to nature. For many, the prospect of a better work-life balance and affordable housing outside the city is a compelling reason to make the move.

As these trends continue to evolve, it will be important to keep a close eye on property market dynamics, including both long-term growth areas and potential challenges that may arise for city developers.

Note: This blog post is for informational purposes only and does not constitute financial or legal advice.