LIVING BY THE sea is a dream for many, but it can add a lot to the price of a home.

That is the finding of a new Daft.ie report conducted by economist Ronan Lyons.

Lyons and his team analysed over half a million property listings – both sales and rental – that have been placed over the last decade. By placing these on a 3D model of the country, researchers were able to calculate the extent of the sea-view enjoyed by the properties and the average increase in value attributed to this.

Homes that are located within a 1km radius of a blue flag beach command, on average, a premium of €6,200, while those within 500 metres of cliffs are on average €7,000 less expensive than similar properties further away.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie report said:

It is not surprising that properties close to the sea or with good sea views are worth more than others. But until now, it was impossible to say systematically how much more properties close to the coast may have been worth.

“If a considerable premium exists for views, and those views are the largest at the coast, then building up at the coast may be the best way to facilitate supply to meet demand. In the century of the city, the sea may be key.”

In Lyons’ commentary, he says that the sea’s aesthetic effect and its amenity are both factors in the pricing of the homes.

Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.