5% to 6% rise in property prices over next few years
In a note circulated to mortgage intermediaries to coincide with IIB Homeloans sponsorship of RTÉ's About the House, IIB says the property market continues to be shaped by the outlook for the economy as a whole.
IIB Bank chief economist Austin Hughes said: "There is a strong likelihood that economic growth and increases in living standards will continue to be among the strongest in the EU for the next four to five years. However, the rate of economic growth is likely to be significantly weaker than the exceptionally rapid and ultimately unsustainable pace seen during the recent boom. The controlled nature of the slowdown for the economy as a whole argues that the factors underpinning the rapid growth of previous years were solid and lasting. It can be argued that the arrival of the slowdown will provide a much-needed 'cooling down' period for many sectors of the economy," he explained.
