Irish house prices to rise at the fastest rate in Europe

Irish house prices to rise at the fastest rate in Europe

House prices in Ireland are forecast to rise at the highest rate of any of the European countries examined by the ratings agency Standard & Poor’s over each of the next two years.

S&P is forecasting price rises of 8.5% in 2017 followed by 7.0% in 2018.

Germany and the Netherlands are each expected to record growth of 7% this year.

Italy’s housing market is expected to be the weakest performer, with forecast price rises of 0.5%, after a prolonged period of decline, owing to slow economic recovery.

The growth in prices in Ireland is underpinned by supply shortages in key areas, such as Dublin, along with a now broad-based and jobs-rich recovery.

Relocation to Ireland of some of London’s financial sector workers as well as financial institutions’ decision to expand EU operations in Dublin rather than London should also support house prices.

The report points to a combination of low borrowing costs and lower prices boosting the purchasing power of potential buyers across the continent.

However, it points out that there are variations from country to country.

The latest figures show that Irish property price growth came in at 11.9% in the year to May, up from 10% in April.

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