The Property Index aims to analyse key factors affecting local housing markets and compare residential property prices across 24 European countries. Despite providing a comprehensive overview of the past year's European housing markets, it notes the slow recovery from the energy crisis and forecasts modest growth for 2024. Interest rates are declining but remain higher than pre-crisis levels, impacting the residential market, particularly in urban areas. The market is also focusing on sustainability, affordability, and technology-driven efficiencies.

Ireland stands out with significant price growth, first-time buyer demand, and development activity, driven by chronic undersupply and supportive government policies. In 2023, 32,695 units were completed (a 10% increase), and new commencements totalled 32,800 (up 22% YoY). By May 2024, 51,935 units had commenced, aided by government incentives. focus on social and affordable housing has boosted activity, but more delivery is needed, with revised targets expected in Autumn 2024.

National house prices rose by 7.9% in May 2024, with first-time buyer mortgage approvals up by 8.6% over the past year. The rental market remains tight, with only 2,000 properties available at the end of 2023 and average rents rising by 6.8%. Government initiatives like the Cost Rental Scheme aim to improve rental affordability, but availability issues continue to pose challenges.

Highlights