will begin to raise interest rates later this year, which will increase borrowing costs, dampening demand in the process.
“All these factors have the potential to coalesce to reduce the current heightened rates of inflation,” Mr Lynch said. Based on a basket of listed properties, the company said headline inflation was running at 11.1 per cent year on year in the first quarter and at 9.6 per cent in Dublin.Lower valued properties have recorded the largest increases in the rate of growth, albeit sustained price inflation is an almost ubiquitous trend nationally at present, it said. It forecast price growth would average at 8 per cent this year.
“This will likely lead to a continued divergence in price and rental growth in and outside the capital, as witnessed in recent times,” he said.