Industry Updates: Irish House Prices, UK Millionaire Exodus, Paris Moves

Irish house prices increased by almost 9 percent year-on-year at the end of June as a shortage of second-hand properties for sale was reported. 

According to the latest figures from the residential property index compiled by Ireland’s Central Statistics Office (CSO) house prices increased by 8.6 percent in the 12 months to the end of June this year with house prices in Dublin up 10 percent and 8 percent outside the capital. 

In a statement the CSO said, “Average house prices are now 10.8 percent higher than at the height of the previous property boom in April 2007.” 

The Irish Times reported that the number of pre-existing homes sold in the country has fallen by 5.8 percent to over 47,600 in the last 12 months. 

Joanne Geary of MyHome.ie said that the figures are worrying in light of Ireland’s growing population:  “This trend is particularly concerning when one considers that, according to the Central Statistics Office, the population of the country has grown by an average of 65,000 every year since 2016.”

However, according to GeoDirectory the Republic’s total housing stock has risen to more than 2 million at the end of June with 31,384 new addresses added in the past year – a 17.1 percent year from Q2 of last year. 

The CSO indicated that high costs of borrowing mean the number of homes changing hands has continued to decline. The European Central Bank’s (ECB) Governing Council announced a 0.25 percent reduction in its main lending rate in June impacting over 170,000 households on tracker mortgages representing 25 percent of the overall mortgage market. 

Speaking to the Irish Examiner broker Michael Dowling said: “Banks will not pass on the full rate reductions as their appetite for market share and, more importantly, profitability determines the pricing of fixed and variable rate mortgages.”  

Some analysts have noted that the banks did not pass on the full 4.75 percent increase in rates over the past two years so will not act in lockstep with Frankfurt. 

However, the entry of non-bank lenders and Revolut to the mortgage market could offer more competition and act as an incentive for banks to lower rates. 

While Irish people may not be moving house anytime soon there may be a surge in high worth movers in the United Kingdom as figures suggest the country may experience a net loss of 9.500 millionaires this year. 

According to Henley & Partners, the amount of wealthy people expected to leave the UK is second only to China but ahead of the expected exodus from India. 

The countries set to benefit most are Switzerland, Greece and Portugal who are expected to see a surge in high-net-worth expats enter their jurisdictions. 

The United Arab Emirates (UAE) is projected to benefit the most globally from a surge in millionaires arriving on its shores with a record-breaking 6,700 millionaires expected to arrive this year. 

The United States is estimated to see a net inflow 3,800 millionaires with Italy expected to take in 2,200. 

According to Dominic Volek of Henley & Partners, global uncertainty is causing millionaires to jump ship to more secure and stable locations: "An unprecedented 128,000 millionaires are expected to relocate worldwide this year, eclipsing the previous record of 120,000 set in 2023. As the world grapples with a perfect storm of geopolitical tensions, economic uncertainty, and social upheaval, millionaires are voting with their feet in record numbers.”

Following the Olympic games Paris the moving industry is expected to resume operations later this week. 

For local and European moving companies’ operation in or around the French capital disruptions related to the games are expected to cease this week. 

However, many of these restrictions are expected to return on August 28 as the Paralympic Games begin.