Bad news if you’re looking to buy a house in Ireland. The last house price report by Daft.ie, one of the most important property websites in the country, shows homes outside the capital have increased in price by 13% over the past year.
On the other hand, it shows that inflation in Dublin house prices has fallen from 24.5% to 2.4%. “At a time when urban house prices in Cork, Galway and Limerick are rising at a rate of almost 20% a year, they are now falling in some of Dublin’s most desirable postal districts, like Dublin 6”.
A little over a year ago, house prices in Dublin were rising at a rate of over 20% a year while elsewhere in the country, they were almost static – rising at a rate of 2.1% a year. Daft calls this a “remarkable turnaround in the Irish housing market.”
As an explanation, the report suggests that “the fact that Ireland’s economic fortunes have improved so dramatically and rapidly is likely to be at the heart of recent increases in prices in many parts of the country”. For the specific case of Dublin, it explains that the new Central Bank rules, which “tie house prices to income”, are behind it.