Bank of Ireland's quarterly analysis of the Irish property market has revealed that 2006 has begun strongly and is set to deliver 9% house price growth.
Bank of Ireland said the figures came despite record supply and the prospect of rising interest rates. It said it now anticipates that the strong property market will continue throughout 2006 though house price inflation will slow to 3% in 2007.
Commenting on the findings of the review, Bank of Ireland’s group chief economist said: So far in 2006 the Irish housing market remains vibrant; this is understandable given the strength of the Irish economy and the continued surge in employment with the creation of an estimated 80,000 jobs over the year. These factors along with buoyant wage inflation and tax concessions in the Budget are likely to drive household income growth in excess of 9%.