Irish property prices surge by almost 8%

There's been a spike in demand for apartments...

Irish property prices surge by almost 8%

Rolling News

Irish residential property prices were 7.9% higher in January - that's well above the 5.6% year-on-year increase recorded in January 2016. 

Dublin properties were 5.3% more expensive. House price costs went up by 4.9% - while apartments were 9.1% more expensive.

The highest increase was in south Dublin (6.8%) while the lowest was in Fingal (2.9%).

Prices outside of the capital were up by 11.3% - with the West showing the strongest growth, increasing by a massive 18.8%.

Apartment prices in the Rest of Ireland went up by 15.7%.

From the bottom of the market in early 2013, prices nationally have increased by 49.6%.

During the same period, Dublin residential property prices have increased by 65.2% while residential property prices in the Rest of Ireland are 45.9% higher.

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Commenting on the data, KBC Ireland said, "Strong Irish residential property price data for January suggest a continuation of the firmer trend in housing price inflation evident through the second half of 2016. This reflects a pick-up in demand for property that now appears to be gathering pace faster than the still tentative increase in new building."

"A further ingredient likely to be supporting demand in early 2017 is recent adjustments to policy settings, most notably the recent Budget’s introduction of the "help to buy" scheme and the Central Bank’s easing of its macro-prudential regulations. While still relatively recent initiatives (particularly CBI changes), it might be expected that the ‘announcement effect’ of such measures would quickly filter into price setting in the property market," the bank added.