DAVY VIEW

New data published by the Central Statistics Office (CSO) show that employment accelerated in Q3, while home prices continued to grow in double digits in September. The Irish economy had been widely expected to slow this year, but evidence from a broad range of indicators points instead towards rapid growth and strong levels of demand. However, supply has lagged behind, especially in terms of housing. We expect strong momentum in the second half of this year will contribute to an increase in residential property prices next year of about 7%.