Real estate prices rose nearly 8% in 2021, and there was an urban-rural divide according to new data released by real estate website Daft.ie.
The national average home price was â¬ 290,998, and prices for the last three months of this year were 7.7% higher than the same time period in 2020, according to the website’s home price report.
The average price of a house in Dublin in 2021 increased by 3.4% compared to last year to reach â¬ 405,259.
The report shows that the smallest increases were seen in cities. In Galway, the average price of homes was â¬ 322,543, up 1.6%.
In Cork City, prices rose 5.5% to an average of â¬ 313,436 while in Limerick and Waterford cities the increases were 6.4% and 7.5% respectively to 234,908 â¬ and 211,023 â¬.
Outside the cities, prices have increased an average of 12.5% ââthis year, with the largest increase (14.6%) in the Connacht-Ulster region.
In Munster, prices increased by 9.2%, while in Leinster, outside Dublin, prices increased by 11.9%.
We need your consent to load this rte-player contentWe use rte-player to manage additional content that may place cookies on your device and collect data about your activity. Please check their details and accept them to load the content.Manage preferences
The report highlights the number of newly built homes that have been sold this year – 5,526.
There was also another divide between rural and urban areas, with deals in new housing in Dublin falling by 18%, while in suburban counties they increased by 36%.
The typical price for a newly built house was â¬ 345,000.
The real estate supply was higher than in 2020 but still well below pre-pandemic levels.
According to the Daft.ie report, there were just over 54,000 listings for properties for sale this year, up from nearly 70,000 homes listed in 2019.
The author of the report, Trinity College Dublin economist Ronan Lyons, said house price inflation is “stubbornly high” and that in the face of strong demand the key to solving market problems is housing is an additional offer.
Speaking on Morning Ireland, Mr Lyons said prices in city centers were increasing slightly, but prices in rural areas of the country had increased by 10-20% in parts of the country.
Covid-19 has reshuffled demand, he said, and boosted demand in places like Leitrim, Mayo and County Galway.