Ireland has the fastest-rising property prices in the world this year, according to a new international study of global markets.
The Knight Frank Global House Price Index shows Ireland’s 12-month price growth of 15pc running at the fastest rate of all 54 countries surveyed.
Liam Bailey, Knight Frank’s global head of research, said: “I wouldn’t be too concerned for Ireland just yet, given that the country has rebounded and is making ground after one of the worst property crashes. There is an obvious return to confidence in the Irish economy overall and interest rates remain low.
“However, these sort of increases are unsustainable in the long run and it is likely that Ireland’s market will show some cooling going forward.”
Ireland tops the table ahead of Turkey (14pc), Dubai / The United Arab Emirates (12.5pc) and the United Kingdom (10.5pc).
The international report, which compares inflation rates from markets for the year to the end of the third quarter, also shows Ireland having the highest six-month increase at 13.5pc.
Our three-month increase is recorded at 6.2pc. That works out at over 2pc a month or more than €6,000 in four weeks on a €300,000 home.
Ireland tops the property price inflation table alongside other countries in which there have been recent concerns about housing bubbles.
These include the UK at fourth, where the Bank of England has recently reduced the lending capacity of banks using high loan-to-value transactions.
Also sharing the top of the table is Dubai (third), where the Government has recently moved to limit investor activity, and Australia (ninth), where a splurge of Chinese spending on property has helped house prices surge by 9.1pc.