Sales of Irish prime country homes were worth €198m in 2022, up 51% from a €134m a year earlier, according to Savills Ireland.

A total of 130 deals were agreed for Irish prime country homes, an increase of 44 sales or around 48% from 2021.

“Prime country homes continue to be in strong demand as remote or flexible working is now a viable working pattern for many," said James Butler, head of country agency at Savills Ireland.

"Furthermore, buyers in this segment of the market are likely to be in more senior positions so are granted more flexibility in how they allocate time between the office and working from home.

"Changes to where and how people work have made country living more viable for these more established workers who may not be required to be in the office all the time.

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"This helps explain the extraordinary boost in sales volumes witnessed in 2022 and is likely to be a feature of the prime country homes market this year and beyond.”

The strength of the US dollar drove significant interest among American buyers as US visitors to the Savills Ireland website rose 87% over the past six months.

International buyers accounted for 43% of deals, while cash buyers remained the dominant financing arrangement, with 90% of buyers in this market segment acquiring properties without financing agreements, up from 87% in 2021.

“International buyers remain a key demographic in the prime segment of the market, especially those with more significant links to Ireland," Butler commented.

"They tend to be Irish nationals who now live abroad and want properties close to where they grew up, or international buyers brought up abroad who want a connection to family roots."

The €198m worth of transactions was the highest level recorded since the introduction of the Property Price Register in 2012, and the average value of deals was static at €1.5m.

The market has surged compared to the pre-Covid period, with 46 sales worth a total of €65m in 2018 and 49 deals worth €99m in 2019.

Co Cork was the most popular county, accounting for 28% of all sales, while Kinsale was the country's most popular town in the segment, making up 9% of sales of prime country homes last year.

The second, third and fourth most popular locations were Kildare (14%), Wicklow (13%), and Waterford (8%), and Savills Cork director Catherine McAuliffe said that US and German buyers had been extremely active in Kerry (6%).

Wexford (4%), Galway (4%), Limerick (3%) and Donegal (3%) rounded out the top 10 countries for prime country home sales in terms of value.

"These locations likely highlight the movement of households away from County Dublin to benefit from homes with better amenities and space, all facilitated by a more flexible work culture in many of Dublin’s largest employers. Buyers in this market segment prioritise living standards and amenities over location," Butler added.

Looking ahead, Savills said the shift towards remote working had changed the demographic of buyers, with preferences shifting towards modern or recently refurbished units that meet more contemporary living styles.

Stock that meets these criteria is limited in Ireland, with refurbishment being impeded by build cost inflation and regulation around changes to historic homes, and the lack of supply and change in preference is widening the pricing gap between properties that meet requirements, those that can feasibly change and the rest.

Savills has forecast that this price discrepancy will continue as country living becomes more appealing to a greater number of people, while macroeconomic headwinds and rising interest rates will also affect affordability.

The company said the prime country home market should be "relatively well-shielded" from any ill effect though due to the prevalence of cash buyers, although negative sentiment in the general housing market could slip into the segment.

The strong dollar, which effectively discounts prices paid in euros, is a factor that may encourage buyers to purchase and boost sales in 2023.

Photo: Rockfield Estate, Kells, Co Meath. (Pic: Savills Ireland)