DAVY VIEW

We had flagged that Irish residential property prices would likely fall in early 2023, so the 0.6% decline in the Residential Property Price Index (RPPI) in March is not a surprise. Given MyHome asking prices fell 0.3% in Q1 2023, further declines in transaction prices are likely. However, we expect the RPPI will be broadly flat in 2023, gaining momentum in H2, as the impact of the loosening of the Central Bank’s mortgage lending rules is felt.