Property prices in Ireland are now ‘very close’ to Celtic Tiger levels after rising about 12% last year, and the spectre of rising inflation could force many young buyers out of the market, according to a new report. 

The latest Residential Property Price Barometer from the Institute of Professional Auctioneers and Valuers (IPAV) charts prices achieved for three and four bedroom semi-detached homes and two-bedroom apartments in the second half of 2021. 

IPAV chief executive Pat Davitt said the report outlines how market conditions are freezing many young buyers out of the picture. “We are now very close to 2006/7 levels of house prices,” he said. “However, we are in a very different market. At that time there was no shortage of supply, we were building 93,000 units per year. There was excessive lending with banks often approving several prospective buyers for the same property. They ended up competing against each other, thereby pushing up prices.

“Many properties are being purchased from savings and parents are contributing hugely to deposits for young buyers. With scarcity of supply, the current market favours those on higher incomes and those fortunate enough to have family support. There is a real danger that unless these issues can be dealt with without further delay, the storm clouds of rising inflation could scupper many prospective buyers.”