Irish house price growth may have stalled of late, but new figures show that Ireland was nonetheless one of the fastest growing markets in the world in the year to March 2016.
According to figures from the Global Property Guide, a price increase of 7.74 per cent in the year to March 2016 saw Ireland take its place as the sixth fastest growing market in the world behind Turkey (Istanbul 19.05%); China (Shanghai 16.64%); Sweden (12.1%); Romania (11.55%) and Qatar (9.27%). Ireland, the report says, is “reaping the benefits” of the structural reforms it introduced early in the crisis.
Pointing to Turkey’s rapid growth, the report notes that its housing market was boosted by strong foreign investment and growing population, “despite a collapsing currency, dissatisfaction with the government, chaos on Turkey’s doorstep in Syria and Kurdish Iraq, and rising internal tensions”. Sweden’s market grew strongly on the back of “robust economic growth, the central bank’s negative interest rates and a shortage of housing supply”. Across Europe, house price growth was strong, with house prices risubg in 18 of the 22 European housing markets for which figures were available during the year to Q1 2016, one of the highest numbers recorded since the global financial crisis.
On a quarterly basis, Irish house prices dropped slightly by 0.12 per cent in the first quarter of 2016, compared with growth of 0.87 per cent in the UK, 1.95 per cent in Germany and 2.37 per cent in Sweden.
The biggest year on year house price declines in the first quarter were seen in Russia (-13.04%); Mongolia (-11.93%); Puerto Rico (-10.33%); Hong Kong (-9.91%); Egypt (-9.49%); and UAE (-9.26%).
Dublin prices
Meanwhile house price growth in the capital has rebounded in the first four months of 2016, figures from Savills show, with price growth up from 2.6 per cent to 4.6 per cent in the first four months of 2016.
“As we predicted, the mortgage rules have proved to be more a bump in the road than a lasting barrier to house price growth. If you freeze people out of buying their own homes they have to rent. This just inflates rents and attracts investors who drive up prices by competing for properties,”Savills Director of Research John McCartney said.
Looking ahead McCartney said that Dublin price growth will accelerate to 5.5 per cent by mid-year due to continued investor activity and base effects.
