One in five first time buyers now immigrants

Almost one-in-five first time buyers who purchased in the first half of the year were born outside the state, it emerged today.

Research by the Irish Mortgage Corporation revealed that Asians are the biggest non-Irish property buyers (34.5%), followed closely by residents from the UK (28%).

EU nationals, particularly immigrants from Eastern Europe, including Poland, continue to purchase at marginal rates.

But overall 82.9% of Irish are snapping up new homes.

“There is an unmistakable trend that foreign nationals are increasing their share of the first time buyer market in Ireland,” said Frank Conway, Director with Irish Mortgage Corporation.

“However, Irish people are still the largest group in the first time buyer category by a ratio of almost four-to-one.

“Among Asians there continues to be a specific concentration of buyers from the Philippines and India.

“UK nationals also increased their share of the market to the highest level in recent years.”

Around 420,000 non-Irish nationals have now made Ireland their home.

The Irish Mortgage Corporation predicts that by the end of the decade, up to 25% of first time buyers could be made up of foreign nationals.

Recent CSO figures show some 146,287 non-Irish people have a home, but only 47,000 are owner occupiers.

The British do best with an owner-occupancy rate of 71%, but Poles only manage just under 5% even though there are more than 100,000 living in the country and many employed in the construction sector.

Meanwhile, a property website has revealed average rents across the country hit a new all-time-high this summer.

Daft.ie found that in June 2007 rent nationwide stood at 1,372, euro a month - just over 100 euro or 9% more than this time last year.

In most areas in Dublin, rents now are between 8% and 12% higher now than 12 months ago, while in the capital’s commuter towns rents remain the same as last year – at just over €1,100 on average.

“Overall, rental inflation looks to have peaked – and more than likely, so have rents, as the bounds of tenants’ ability to pay have been reached,” said Ronan Lyons, economist at Daft.ie.

“With interest rates back at normal levels, demand has contracted and people are looking very closely at what they can afford.”