Sherry Fitzgerald posts €35m turnover as supply issues further boost house price inflation

The company's cash at bank and in hand exceeded €7m, up by a significant 65% on the previous year as it benefitted from rising house price inflation. Photo /RollingNews.ie

Ireland's largest estate agent, Sherry Fitzgerald saw turnover rise by almost 11% annually, totalling more than €35m in 2022 as housing shortages continued to outstrip supply.

The estate agent and auctioneer, which now has more than 100 offices nationwide, reported a "robust" performance in the 2022 financial year despite a "challenging macro-economic environment," citing Russia's invasion of Ukraine, the energy crisis, rising interest rates and the cost of living.

The group posted an operating profit before non-recurring charges of more than €3.5m for the year, with the estate agents' net asset position at the end of the year surpassing €11.1m, up from €7.85m in the previous year. 

However, Sherry Fitzgerald, which was purchased by Tommy Kelly's Castlegate Investments for €50m in 2022, ended the year posting a loss due to €3.6m spent in once-off restructuring costs associated with the acquisition. 

The company's cash at bank and in hand exceeded €7m, up by a significant 65% on the previous year as it benefitted from rising house price inflation. 

According to Sherry Fitzgerald, housing output in Ireland increased by 46% annually, with new dwelling completions last year of 29,800 far exceeding 2021 figures of just over 20,000.

However, the estate agent said demand for housing continued to outstrip supply due to rising populations, immigration and a growing economy, citing reports suggesting requirements above 50,000 new dwellings per year.

According to the company, "strong buyer demand" coupled with "historically low stock levels" led to further house price inflation, with Sherry Fitzgerald Research reporting price levels increasing by almost 6% in 2022. 

The company employed 285 people in 2022, with the average yearly salary per staff member exceeding €73,500. 

Looking forward, the group said there remained "several challenges" to be overcome before a fully functioning property market is restored in Ireland, including an excess of demand over supply, further potential interest rate rises, limited new housing stock, planning constraints and ongoing credit restrictions.