It’s time to build private homes in Tuam again
PROPERTY
Property Insights by Johnny Gannon, Fair Deal Property
There is no doubt about it: supply remains the defining issue in the Irish property market. Across the country, and particularly here in Tuam and the wider Galway region, second-hand homes are being snapped up at a remarkable pace. Well-presented properties are moving quickly, often within weeks, because demand continues to significantly outstrip supply.
Over the past number of years, we have seen meaningful delivery of social housing. Approved Housing Bodies and local authorities have been active, and that delivery has played an important role in providing much needed social housing. However, the current structure of supply has created a new imbalance. A considerable portion of newly constructed homes in many parts of the county have gone directly into social housing delivery. While this serves a vital purpose, it has restricted the availability of new homes for private buyers.
From a funding perspective, schemes with a single, guaranteed exit to an Approved Housing Body or local authority up to now have been far easier to finance. With a contracted purchaser in place, funding was more accessible and more predictable. In a cautious lending environment, that certainty mattered.
But lending markets are now evolving in tune with buyer demand. Private sale prices have strengthened considerably, particularly for energy-efficient family homes. Demand from first-time buyers and commuter purchasers remains deep and well qualified. As values rise and absorption rates remain strong, the risk profile of private developments continues to improve. The pendulum may now be swinging back. Private schemes are becoming more viable and, critically, more fundable.
First-time buyers, in particular, have felt the absence of new private supply. Many are mortgage-approved, financially prepared, and ready to purchase, yet they are competing almost exclusively for second-hand stock. In regional towns like Tuam, we have not seen large-scale private housing developments at meaningful scale since the last financial crisis.
The fundamentals are now firmly in place. Buyers are coming not only from Tuam but from Galway City and its commuter belt, attracted by relative affordability and quality of life benefits. Mortgage lending remains robust and supports such as Help to Buy and the First Home Scheme continue to underpin purchasing power. Land exists. Infrastructure has improved and connectivity is excellent.
The market is signalling clearly that it is ready. The opportunity is here. The buyer base is here. The viability is returning. It’s time to build private homes in Tuam again.
For more information visit www.fairdealproperty.ie