The Irish economic crisis began with the rapid growth of the Celtic Tigers in 2008.
Affected by the global financial crisis of 2007-2008, the country fell into recession, leading to an increase in unemployment and immigration, and has not eased for several years.
The Central Statistical Office (CSO) is now assembled index from
Before the Irish economic crisis, during the economic recovery and several years after the country’s economic recovery, it was repeatedly asked.
These indicators cover a range of topics and show that the import of sparkling wine in 2008 reached 28.9 million euros, but it fell by half after the economic collapse to 14.5 million euros.
In 2009, the number of licensed vehicles fell to almost half of the 2008 level, while the number of immigrants peaked in 2012, with 83,000 leaving the country.
We decided to take a closer look at how the Irish economic crisis affects the real estate market. First, let's look at the changes in the 2006-2017 annual housing price index:
As shown in the above chart, house prices in 2006 and 2007 rose by 14.9% and 7.5% respectively.
From 2008 to 2012, house prices fell every year, with the largest decline in 2009, at 19.2%.
However, this trend reversed in 2013 and the house price index rose slightly by 1.2%.
Since then, house prices have risen sharply year-on-year, with an annual increase of more than 7.5%.
Let us now look at private sector debt and outstanding mortgage debt between 2003 and 2017:
As noted above, mortgage debt accounted for 27% of total private sector debt in 2003.
By 2007, both mortgage debt and private sector debt were expanding, but mortgage debt was expanding at a higher rate.
In 2017, mortgage debt accounted for 10% of total private sector debt, compared to 32.7% in 2005.
Since 2003, related mortgage debt has increased by 19 billion euros, while private sector debt has increased by 511 billion euros.
A large part of Ireland’s private sector debt is related to the financing of residents, foreign manufacturing and service companies.
It's time to look at the 2003-2017 private sector traffic and mortgage transaction process:
Between 2003 and 2006, private sector credit and mortgage lending increased annually.
However, since 2007, both series have shown a downward trend.
The net flow of mortgages became negative in 2010 and continued until 2015.
According to civil society organizations, this shows private sector repayments. Since 2016, it has become positive but still at a low level.
The relatively large positive credit flows during 2004-2008 were mainly related to investment in residential and commercial properties.
The positive value of 28% in 2011 was mainly caused by the refinancing business of large multinational groups.
Since 2016, a large amount of negative credit flows have occurred, mainly due to the net repayment of non-financial corporate debt related to intellectual property financing.
Finally, planning permits were obtained between 2003 and 2017. These rights reached their peak in 2004, when they obtained 101,653 permissions for new homes and apartments.
Since 2004, the total number of planning permits has decreased until 2009, and has declined significantly in 2009 and 2010.
However, as the crisis has diminished, the level of authorization has gradually increased since 2013.
The CSO said that the completed new residential data was only available in 2011.
After the decline in 2012 and 2013, the number of new homes increased from 2014.
In 2017, the number of new homes was 14,435, a significant increase from the number of 6,994 completed homes in 2011.
In 2018, the effects of austerity and economic recession remain evident in today's housing market.
These CSO charts allow for narrowing, assessing and reviewing the recession and how it has affected housing in Ireland over the years.