Ireland leads european house price growth

Photo: TaxRebate.org.uk

Ireland is leading a rise in house prices in Europe, according to the latest official statistics.

European house prices have begun to rebound following years of declines, thanks to the improving overall economic picture and growing confidence - a trend that continued in the first quarter of 2015, before the Greek crisis fully unfolded.
Figures from Eurostat show that house prices in Europe rose 0.9 per cent between January and March 2015, compared to the previous quarter, and by an even higher 2.5 per cent compared to the same quarter in 2014.House prices in the euro area climbed by a lower 0.3 per cent quarter-on-quarter and by 0.6 per cent year-on-year.

Ireland's property market has been one of the most emblematic of the European turnaround, with prices rebounding significantly following the country's economic crash. Prices rose 16.8 per cent in the first quarter of 2015 year-on-year, followed closely by Sweden (11.6 per cent), Hungary (9.7 per cent) and the UK (8.5 per cent). The largest falls, meanwhile, were recorded in Latvia (5.8 per cent), Itay (3.3 per cent), France (1.6 per cent) and Slovenia (1.4 per cent).

This is the second quarter in a row that Ireland has led annual growth in Europe, according to Eurostat: in the fourth quarter of 2014, Ireland recorded a year-on-year leap of 15 per cent.

On a quarterly basis, though, Romania led price increases in the first three months of 2015: the country saw values climb 4.1 per cent, ahead of Sweden (3.9 per cent), Hungary (3.7 per cent) and Denmark (3.5 per cent). Belgium, Cyprus and Crotia all recorded the joint highest decline of 2.8 per cent.