DAVY VIEW

The 0.6% fall in Irish residential property prices in January is the first since May 2020. The decline is not unexpected, reflecting usual seasonal trends as well as an underlying slowdown from double-digit inflation. Other indicators still point to buoyant housing demand, and therefore we will not be revising down our forecast for 4% Residential Property Price Index (RPPI) inflation this year. Ireland’s housing market still looks set to outperform the US and UK, where substantial house price falls and declines in transactional activity are expected.