Irish house prices: second highest increase in European Union

Ireland recorded the second highest increase in house prices in the European Union during the third quarter of 2016, according to new figures published by the EU's official statistics body, Eurostat.

House prices in Ireland jumped by 4.7 per cent versus the second quarter, behind Malta, which saw prices rise by 5.4 per cent, but ahead of Estonia, Lithuania and Hungary, all of which showed a 3.4 per cent increase.

The latest figures show euro zone house prices grew at the fastest rate in more than eight years in the third quarter.

Hungary has biggest annual rise

Prices climbed 3.4 per cent on an annual basis, the highest rate seen since the first quarter of 2008, when prices rose by 3.5 per cent. However, on a quarterly basis, euro zone prices were up by just 1.3 per cent.

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House prices for the EU as a whole climbed 4.3 per cent in the third quarter and were up by 1.5 per cent versus the preceding three-month period.

The highest annual increase in house prices in the third quarter of 2016 was recorded in Hungary, where prices jumped 11.6 per cent. Latvia had the second highest year-on-year rise, up 10.8 per cent, followed by Bulgaria, where costs rose 8.8 per cent.

The biggest annual declines in prices were in Cyprus, down 3.3 per cent, and Italy, where prices were 0.9 per cent lower.

New figures released earlier this week by the Central Statistics Office (CSO) show property price inflation in Ireland rose by 8.6 per cent in the year to November, and up 1.5 per cent versus October.

In Dublin, where supply shortages are most acute, prices were up 1 per cent in November and 5.9 per cent on an annual basis.