The growth in property prices in Ireland – perspectives for investors

Against the background of improvement in residential real estate in the UK, there have been positive developments and the property sector in Ireland. Over the past 12 months, including November 2013, property prices in Ireland increased by 5.6% , which clearly reflects a positive trend in the real estate market . But today, prices on the residential real estate market in Ireland is still below their peaks.

The latest data from the Central Statistical office show that in the last days the growth of prices slowed somewhat. If in October the growth was about 6.1% in November to 5.7%.

Dublin is in the lead, leading the price growth in Ireland. House prices in Dublin rose by 1.3% in November and now they are 13.8% higher than a year ago. Prices in Dublin over the last 12 months grew approximately 1.4% on a monthly basis.

Meanwhile, house prices in Dublin are 47.5 % lower than they were at their maximum levels at the beginning of 2007. Apartments in Dublin are now 56.1% lower than they were in February 2007. The residential property prices in Dublin is 49.2% lower than they were at their highest levels in February 2007.

Ireland – the country most badly hit by the global financial crisis of 2008. Despite global financial problems, the crisis in Ireland intensified in the power of the sovereign debt crisis in Europe and due to a speculative bubble in the real estate sector of Ireland, which was the reason for the overheating Irish economy. In the end the financial crisis in Ireland has led to an increase in debt from Irish banks, which reached 100 billion euros. The country fell into a period of depression, which was accompanied by rapid growth of unemployment. Ireland, known as the country favorable for migration, has become a country that exports its labour force abroad.

By the beginning of 2013 in the Irish economy showed signs of improvement. Due to its strong historical, linguistic and economic relations with the United States, Britain and Germany, which continue to invest in the Irish economy, the growth in property prices in Ireland in 2013, clearly demonstrates the fact that the economy starts to get out of a protracted financial crisis.

® Eleantra. 30.12.2013