"Dublin may become increasingly like London" - Property prices increase by 7.1%

Prices in the capital are climbing, while elsewhere they are dropping back

Property prices, Dublin, CSO, rest of Ireland, apartments, increase, Savills

Picture shows Sherry Fitzgerald and Douglas Newman Good For Sale and Auction signs in Dublin city centre | Image: RollingNews.ie

New figures from the Central Statistics Office (CSO) show residential property prices increased nationally by 7.1% in the year to April.

This compares with an increase of 7.4% in March, and growth of 15.8% in the twelve months to April last year.

While in the month of April, prices grew by 0.3% - compared with no change in March and a 0.6% increase last year.

In Dublin, residential property prices increased by 1.6% in April and were 4.6% higher than a year ago.

House prices here increased by 1.9% in the month and were 5% higher compared to a year earlier.

And Dublin apartment prices were 1.1% higher when compared with the same month of 2015.

The price of residential properties in the rest of Ireland, excluding Dublin, actually fell by 0.6% in April - compared with an increase of 0.3% in April 2015.

However this an overall decline.

House prices in Dublin are 33.1% lower than at their highest level in early 2007, while apartments in the capital are 41.5% less than they were in February 2007.

The price of residential properties outside Dublin is also 35.8% lower than their highest level in September 2007.

Dr John McCartney, director of research at property group Savills, said: "This is exactly what we predicted. Price growth slowed in Dublin last year as tighter mortgage lending forced people into renting".

"However, this slowdown was always going to be temporary; the shift to renting has forced up rents, attracting investors who are now scrapping to buy properties and driving up prices".

"As this continues the Dublin market may become increasingly like London with expensive properties, many of which are owned by investors," he added.