The Central Statistics Office (CSO) reports that Ireland’s residential property prices have experienced a year-on-year acceleration, with the national Residential Property Price Index (RPPI) showing a 6.1% increase in the 12 months leading up to February 2024. While Dublin witnessed a 5.6% rise, areas outside the capital experienced an even higher increase of 6.5%.
Factors Driving Price Increases
The Economic and Social Research Institute has cautioned that Ireland’s property prices are likely to persist in their upward trajectory due to low investment and a rapidly growing population. This imbalance between supply and demand continues to drive prices higher, contributing to the ongoing housing crisis that affects both residents and businesses in Ireland.
Regional Disparities and Popular Picks
Despite overall price hikes, certain regions remain more attractive to homebuyers than others. In Dublin, while house prices rose by 5.9%, apartments experienced a lower increase of 4.5%. Notably, Dublin City saw the highest growth in house prices at 7.7%, while Fingal observed a more modest increase of 4.5%. Outside Dublin, house prices climbed by 6.3%, with apartments witnessing a significantly higher surge of 9.1%.
Market Trends and Transaction Figures
Transaction data from February indicates a slight decrease compared to the previous year, with 3,327 properties bought, reflecting a marginal dip of 0.7%. Despite this, the housing market remains dynamic, with fluctuations observed across different regions. Leitrim emerges as the most affordable location to purchase a home, with an average price of €165,000, while Dún Laoghaire-Rathdown in Leinster stands out for having the highest average dwelling prices at €620,000.
Implications for Home Buyers
The latest figures suggest a resurgence in Irish house prices, following a period of slowdown in 2022 and 2023. Despite economic fluctuations within the eurozone, the Irish property market continues to exhibit resilience, presenting both challenges and opportunities for prospective homebuyers navigating the evolving landscape.
SOURCE: Ref Image from Euronews
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