Coastal Living: Irish Coastal Homes Garnering Top Prices in Booming Real Estate Market

In recent years, Irish coastal homes have been commanding top prices in a booming real estate market.

In recent years, Irish coastal homes have been commanding top prices in a booming real estate market. The allure of living by the sea has driven demand and property values to new heights, particularly in areas close to major cities such as Cork, Dublin, Galway, Limerick, and Waterford. The Central Statistics Office (CSO) has reported a significant increase in the number of people living within close proximity to the coastline, including estuarine stretches and around harbors.

According to CSO figures, an impressive 61% of Cork city and county's population live within 5km of the sea, compared to the national average of 40%. These figures are calculated based on straight-line distance to the coastline, providing a bird's-eye view of the proximity to the sea. Even more astonishing is the fact that 17,140 people, accounting for 3.2% of the entire population, reside within a mere 100 meters of the sea in Cork alone.

Ireland boasts approximately 3,700 kilometers of coastline, according to the Ordinance Survey Ireland (OSI). When considering every intricate indent and creek, the total shoreline extends to over 7,000 kilometers. This extensive coastline, particularly in counties like Cork and Donegal, has become highly valued in terms of property prices. Both counties lay claim to approximately 1,000 kilometers of coastal frontage each.

Numerous studies have indicated the positive impact of exposure to "green space" and "blue space" on both our physical and mental well-being. Living near the sea means larger skies, more sunlight, and less polluted air. It allows individuals to be more in tune with the natural elements, from the movement of the tides to the shifting of seasons and weather patterns. Those who reside in less densely populated areas tend to engage in more physical activities such as countryside hikes, beach walks, cycling, swimming, and various water-based pursuits. The proximity to nature, wildlife, and marine life provides a sense of harmony for both body and mind.

The health benefits associated with living near or by the sea have long been acknowledged. The Irish have been drawn to coastal resorts, spas, and sanatoriums since Victorian times, seeking the advantages of fresh air, seaweed baths, and outdoor activities like "wild" swimming. It comes as no surprise, then, that seaside holidays have been a popular choice for generations, both domestically and internationally. The sheer enjoyment and health benefits derived from a temporary seaside retreat can be multiplied manifold by residing permanently by the sea or water.

Even before the global pandemic took hold, Irish coastal properties have always been highly sought after and, consequently, highly priced. Coastal properties in many countries, including the UK, historically command a 10% premium over equivalent properties situated further inland. In Ireland, the demand for coastal homes dates back to the 1960s, when home holidays began to gain popularity. Additionally, tax-incentivized developments designed for rental use in 16 coastal resorts were developed in 1995, providing permanent homes for many once the incentives expired.

The COVID-19 pandemic further boosted the demand for coastal properties, resulting in a remarkable 20% increase in their values compared to the national average growth since 2019. Some locations experienced doubling in value within just five years, thanks to the combination of an elevated demand and limited supply. Although remote working arrangements and the freedom to relocate are gradually diminishing as companies strive to encourage a return to office-based work, the demand for coastal properties remains high.

Overseas buyers, particularly those with considerable wealth, view Irish coastal properties as an attractive investment, considering them a mere drop in the ocean relative to their financial portfolios. Consequently, headline-grabbing prices continue to be paid for these exclusive properties.