DAVY VIEW

Yesterday’s Residential Property Price Index (RPPI) data showed a fourth consecutive monthly drop, by -0.1% in February, with annual inflation now running at 4.3%. The slowdown has mainly reflected the capital, Dublin (1.4%), with inflation in the rest of Ireland still at 7.5%. We think prices will rise by 4% through 2019 given a solid 2% increase in asking prices in Q1.