{"id":645824,"date":"2026-10-05T21:26:12","date_gmt":"2026-10-05T21:26:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/645824\/"},"modified":"2026-10-05T21:26:12","modified_gmt":"2026-10-05T21:26:12","slug":"ireland-records-one-of-lowest-rates-of-house-price-inflation-in-euro-zone-the-irish-times","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/645824\/","title":{"rendered":"Ireland records one of lowest rates of house price inflation in euro zone \u2013 The Irish Times"},"content":{"rendered":"

Ireland recorded one of the lowest rates of house price inflation in the euro zone in the second quarter, Eurostat<\/a> said.<\/p>\n

The agency\u2019s latest owner-occupied housing price index, which excludes homes bought as investments, indicated prices across the 27-member bloc rose by 4 per cent \u2013 in annual terms \u2013 between April and June this year.<\/p>\n

The level of inflation recorded in Ireland was 3.5 per cent.<\/p>\n

Only Luxembourg<\/a> (-1.7 per cent), France (1.5 per cent), Belgium (1.8 per cent), Slovenia (2 per cent) and Finland (2.4 per cent) recorded lower rates.<\/p>\n

The highest increases were recorded in Croatia<\/a> (12 per cent), Bulgaria (11.7 per cent), Lithuania (10.8 per cent) and Portugal (10.6 per cent).<\/p>\n

[\u00a0What is behind the slowdown in Ireland\u2019s property prices?Opens in new window<\/a>\u00a0]<\/p>\n

The quarter-on-quarter increase in owner-occupied home prices in Ireland was 0.7 per cent, half the euro area average of 1.4 per cent.<\/p>\n

The findings appear to back up claims that the housing market here is softening.<\/p>\n

They come in the wake of a report from property website Daft.ie<\/a> that indicated house prices, both new and second-hand, rose by 3 per cent in the year to September, about half the rate of inflation seen a year earlier.<\/p>\n

That report found prices in Dublin<\/a> rose by 0.8 per cent in the year to September, the slowest rate of increase since 2020.<\/p>\n

The slowdown in price growth has been linked to expectations of higher borrowing costs with the European Central Bank<\/a> (ECB) in the process of raising interest rates and comes amid the uncertain geopolitical outlook.<\/p>\n

A global bond market sell-off is also pushing up borrowing costs in many countries. <\/p>\n

In the euro area, loans with an initial fixed-rate period of 10 years-plus rose by 8 basis points to 3.43 per cent in August and the surge in euro zone government yields in recent weeks is expected to push rates even higher.<\/p>\n

[\u00a0Irish house price growth slows as higher interest rates biteOpens in new window<\/a>\u00a0]<\/p>\n

Ireland\u2019s housing has been adversely impacted by a shortage in supply.<\/p>\n

The Economic and Social Research Institute<\/a> (ESRI) recently forecasted that 39,200 new homes would be built in 2026 and just under 40,500 in 2027, while warning that planning permissions had not risen enough to support a sustained increase in construction. <\/p>\n

The Government is targeting about 300,000 new homes to be built between 2025 and 2030, a pace of construction that the State has not witnessed since the Celtic Tiger era.<\/p>\n

However, several industry leaders here claim the Government has the right policies in place to deliver 50,000 homes a year.<\/p>\n

In the past 24 months, it has changed design standards, overhauled the rent rules and reduced VAT on new builds in a bid to entice investors back into the Irish market.<\/p>\n","protected":false},"excerpt":{"rendered":"Ireland recorded one of the lowest rates of house price inflation in the euro zone in the second…\n","protected":false},"author":2,"featured_media":645825,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[72,3664,615,69562,12965,27203,3662,11596,61,60,106606],"class_list":["post-645824","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-daft-ie","tag-dublin","tag-economic-social-research-institute-esri","tag-european-central-bank-ecb","tag-eurostat","tag-housing-crisis","tag-housing-demand","tag-ie","tag-ireland","tag-luxembourg"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/645824","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=645824"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/645824\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/645825"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=645824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=645824"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=645824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}