Many new homes have seen prices slashed over the past few weeks in an attempt to drum up interest in property ahead of the traditional lull during the summer period. The discounted Irish homes have seen many property buyers become more interested in housing.

Naturally, homes in a good location are the ones that are attracting the most attention – many people queued overnight to buy flats in the Dublin docklands as they were perceived as an excellent location and a good price.

Obtaining mortgages for Irish property is still difficult meaning that although there is increased interest, the market is not picking up particularly quickly.

Developers appear to be more reluctant to build new homes, meaning when the housing market does pick up in Ireland, new homes may be at a premium. In 2007, 93,000 housing units were built. In the first four months of 2009 just 10,000 housing units were built with an estimate that around 23,000 will be completed by the end of the year.

The one thorn in the side of Irish property investors is the Government’s recent decision to introduce taxes on holiday homes and investment properties. The decision means that although Irish property is starting to look more attractive, many Irish buyers will be put off by the new taxes and may be tempted to invest in other countries instead.

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