Housing in Dublin is becoming more expensive. In May prices of houses and apartments in the Irish capital increased by 4.2% compared with April and by 22% year on year, reports ee24.com citing bloomberg.com.
Pricing policy of developers and sellers in the secondary market is dictated by lack of supply: during the crisis, the construction industry was at an ebb, and the number of built homes has fallen several times. The Central Bank of Ireland urges lawmakers to pay attention to the housing shortage in Dublin, which threatens to lead to a new phase of financial instability.
The second factor affecting the price increase was a positive change in the economy. During the year the unemployment rate fell from 13.6% to 11.8%. Domestic demand will only grow, while we should not forget about the foreign buyers: Dublin was recognized as one of the most attractive and promising cities in the world to invest in housing.
Despite the rapid rise in real estate prices in Ireland they are still lower than in February 2007: by 46% in Dublin, and by 47% outside the capital.