Dublin Airport Expansion Linked to €5,500 House Price, €250 Rent Hikes by 2031
A report by Transport & Environment and New Economics Foundation links Dublin Airport expansion to a €5,500 house price increase and a €250 annual rent hike by 2031. It warns that unchecked air traffic growth harms local communities, exacerbates rental crises, and negatively impacts broader economic productivity and environmental goals.
A new report, commissioned by Transport & Environment and researched by the New Economics Foundation, claims that increased air travel, particularly through Dublin Airport expansion, negatively impacts local communities by raising house prices, lowering wages, and reducing investment in other economic sectors.
The report predicts a 10.2 per cent increase in Irish aviation traffic by 2031, leading to a €5,500 rise in house prices and an annual rent increase of €250. This represents the largest absolute rent rise among countries studied. It notes that tourism benefits increasingly go to large businesses and property owners, contributing to rising rents in five countries, including Ireland.
Sorcha Tunney, Senior Manager at Opportunity Green Ireland, stated that Europe cannot pursue unlimited air traffic growth without considering its social, economic, and environmental consequences. She highlighted that every additional passenger flying into Dublin exacerbates an already struggling rental market. Tunney criticized the government's move to lift the Dublin Airport passenger cap without a comprehensive cost-benefit analysis, calling it a «reckless leap into the unknown».
The report also suggests that inbound tourism's pressure on house prices could lead to negative productivity outcomes. In Spain, Portugal, and Italy, property price spikes from 2019 to 2031 are projected to cause a 0.4–0.5 per cent reduction in whole-economy business investment. Overemphasizing tourism could weaken higher-productivity sectors, harming long-term industry and job viability. The aviation sector is responsible for an estimated 52 per cent of global tourism's direct emissions, with European international air travel emissions projected to rise over 60 per cent between 2016 and 2030.