Ireland now ranks number one for fastest rising property prices in the world this year, beating out Dubai, New York, Shanghai, the United Arab Emirates, Turkey and London.
In the last twelve months, property prices in Ireland, mostly in Dublin and the surrounding areas, have grown 15%, the highest growth rate of all 54 countries surveyed. For example, a six-bedroom Georgian waterfront home in Dalkey, a Dublin suburb, is selling at around $14 million today.
Turkey’s rate was ranked second fastest at 14%, and the UAE and UK were at 12.5% and 10.5% respectively.
These findings were reported in an English study of global property markets. The Knight Frank Global House Price Index shows the inflation rates of markets in countries with concerns about housing bubbles. According to the Independent, this includes the UK because the Bank of England reduced the lending capacity of the banks, and Dubai because, like Ireland, it has recently rebounded from a crash in which values went down by 50%.
According to the Guardian, the Central Bank of Ireland is also imposing strict new lending limits come January that will limit buyers to loans three and a half times their income. Many fear that this new policy will end Dublin’s property boom.
Liam Bailey, the study’s Head of Research, said: “I wouldn’t be too concerned for Ireland just yet given that it has rebounded and is making ground after one of the worst property crashes.
“There is an obvious return to confidence in the Irish economy overall and interest rates remain low. However, these sort of increases are unsustainable in the long run and it is likely that Ireland’s market will show some cooling going forward.”
However, the Independent suggests that the cooling has already begun, based on some property prices that have already been reduced within the last couple of months.
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