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How much of an impact is Brexit likely to have on the real estate market in Ireland? Is this the right time for selling overseas property in Ireland ? That depends on who you talk to.
Some experts say that recent invocation of Article 50 by Prime Minister Theresa May of Britain, which sets Brexit into motion, will have only a marginal impact on the Irish housing market.
Others are of the view that Ireland will be affected in a big way by Brexit, positively and negatively. Let’s see how.
#1: British buyers no longer to feature in the Irish property market?
There is a real fear in Ireland that British buyers, who are the biggest buyers of real estate here, may decide against investing in the Irish property market in the future.
The reason for this is obvious – the pound went from 1.55 EUR to 1.07 EUR in the space of a year because of Brexit. It has recovered recently to 1.17 EUR. So, this has made Irish property all the more expensive for British buyers.
#2: British buyers are being replaced by other foreign buyers.
Ireland is a modern, English speaking, business friendly country with an advanced industry and the lowest tax rate in the developed world. This makes it a very attractive country for overseas property investment.
It’s no surprise that there are a number of wealthy business executives from emerging nations such as China, Russia and Brazil that are moving to Ireland and investing in property here. Property purchases of €1 million plus are very common, especially in the Dublin and Cork area. There’s a substantial interest from Germans and Americans as well, who are big investors in Irish real estate.
#3: Rising uncertainty.
Unfortunately, Brexit has led to a climate of rising uncertainty in Ireland. A lot of people are nervous about investing in the property market at this stage since Article 50 has just been invoked in Britain.
Investors want to see how the situation develops in Ireland’s closest neighbour before taking a decision. The UK is Ireland’s biggest trading partner and what happens there has a direct effect on Ireland. So if there was to be a recession in the UK because of Brexit, Ireland wouldn’t be unaffected by any means.
Also, if home prices in the UK collapse because of Article 50, then that could lead a lot of investors to buy property in the UK rather than in Ireland. That is why if you are considering selling overseas property quickly in Ireland, you should track the situation in the UK very closely.
#4: Reverse Migration.
One of the consequences of Brexit is that thousands of people of Irish origin in the UK are looking to return to the home country. The reverse migration of Irish immigrants in the UK back to Ireland is expected to intensify over the next few years as Brexit becomes official. Many don’t see a future for themselves in a Britain that is out of the European Union and will look to come back. There will be a substantial demand for property in Ireland because of this wave of revere imm
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