According to the Economist Intelligence Unit’s (EIU) Global Cost of Living Index 2021, Dublin is the 19th most expensive city in the world to live in. The index, which is led by Tel Aviv, Paris and Singapore, is calculated by comparing the dollar prices of goods and services in 173 cities.
But what are the causes of all this? In 2019, the Irish Time reported that Dublin is the most expensive city in the eurozone to live in, ahead of Milan in Italy and the French capital, Paris. High rents, a consequence of the Republic’s housing crisis, are the main culprit for making Dublin such an expensive place to live, said Noel O’Connor, senior consultant at Mercer’s Irish operation.
“High demand coupled with supply constraints in the private rental market mean that expatriates may face serious problems finding appropriate accommodation” Mr O’Connor warned in the Irish Times article. This is the major drawback that all migrants arriving with aspirations to start a new life in the city may face.
The Irish Times published in April that house price inflation in Ireland suffered the biggest rise in 7 years this February, 15.3%. “Price growth in the State’s property market has risen almost continually since the start of the pandemic, fuelled by factors such as increased savings, remote working and lower-than-anticipated supply”, published the newspaper. It also added that the average price of a home in the Irish capital exceeds €509,000. Snagging is then also very much worth looking into if you are buying a new build, if you’re not sure what snagging is then have a look into that as it’s crucial when buying a new build.
This Eurostat graph shows that Ireland is the country where house prices have risen the most over the last decade.
Comparing the average price of Dublin with other European cities on the Nomadlist portal, we find higher average prices in London, over €675,000, Copenhagen, over €596,000 or Zurich, over €578,000. Other major cities on the continent are well below: €241,000 in Berlin, €306,000 in Paris, €405,000 in Rome, €255,000 in Brussels and €250,000 in Madrid.
It is curious to compare average house prices in these cities with net monthly salaries on the mainland. The Numbeo portal shows that Zurich is the city with the highest salary, around €6975, followed by other Swiss cities. London is ranked number 9 with €3775 and Copenhagen is 14th with €3480. Dublin is ranked 34th, with an average salary of slightly over €3000, very close to Berlin, for example with €2,980.