The Economic and Social Research Institute (ESRI) expects house prices across the country to increase by up to 7% this year – growth unheard of since the property boom crashed several years ago
Following increases in property prices in the Dublin and its surrounding areas, the ESRI is predicting prices of homes across the country to follow suit this year. The body which studies the nation’s economic activity is expecting national house prices to rise by between 5 and 7 per cent. Like in the recent past though, higher jumps in prices will be more pronounced in Dublin than outside the Pale.
The capital, according to the ESRI, could see property prices increase there by between 8-10%. However, the rate of increase for properties outside Dublin will be more modest – between three and four per cent. The difference in predicted rises is mainly attributed to the lack of supply in desirable housing in Dublin – and these figures point towards cautious optimism for the property market’s future.
Indeed, a leading economist with the ESRI, David Duffy, noted that there is very encouraging signs that the market is starting to turn around. In particular, he stresses that increased prices could entice some home owners to try and sell their property thereby improving supply for prospective buyers, especially in supply-stripped Dublin.