DAVY VIEW

Yesterday’s Residential Property Price Index (RPPI) – showing an especially sharp 0.7% rise on the month, driven by the capital, Dublin – pushed annual inflation to 3.7%. This suggests we may have to revise up our forecast for 3% RPPI inflation in 2021, although we will wait to see how asking prices have behaved in Q2 before we do so. Meanwhile, residential transaction volumes have remained strong in April, still seemingly impervious to the third lockdown’s business and travel restrictions.