Investors make a return to the local property market

Investors are making a return to the property sector in Galway for the first time since the collapse of the market, a leading local auctioneer has claimed.

Colm O’Donnellan, of O’Donnellan & Joyce Auctioneers said his latest auction – which recorded more than €2.8 million worth of sales – saw significant interest from investors.

It comes as local builders O’Malley Construction re-start work on two development sites in Galway City, where they are employing around 50 people.

Mr O’Donnellan told Tribune Property: “There is evidence that investors are starting to return to the market in force, as they are seeing prices starting to rise.

“Bear in mind that if you require property at the moment and hold it for a period of seven years you will not be liable for Capital Gains Tax, and this makes it attractive for investors,” said Mr O’Donnellan.

At the auction, a total of 19 properties went under the hammer, with 16 selling – many of the properties sold for in excess of their Advised Minimum Values (AMVs).

“The properties attracted a phenomenal amount of interest and we are starting to see prices moving up, particularly around the city area where there was a large number of interested parties bidding on each property,” he said.

‘Óstán Cheathrú Rua’ – a 26-bed hotel “which has seen better days” and is in need of major refurbishment was the highlight of the afternoon.

For more, read this week’s Galway City Tribune.