Irish real estate returned 12.7% in 2013 compared with just 3.1% in 2012, according to the IPD/SCSI Ireland Quarterly Property Index.
Values rose by 3.2% during the year, the first capital growth since 2007. This compares with a capital value decline of 6.4% in 2012.
Headline capital value growth did not come through until Q3, bringing an end to 23 consecutive quarters of decline.
Investor confidence in Irish property is finally returning to the market following the government’s austerity-led measures to boost the economy. Ireland was the first European country to exit its EU/IM bailout following the global financial crisis, concluding the €85bn (£69.8bn) rescue programme on 15 December.
The fourth quarter saw €243m of investment into Irish real estate, the highest level on record since 2006, and the third highest year of net investment in the 30 year history of the index.
Phil Tily, executive director & Head of UK and Ireland, IPD, said, “2013 has been a year of transformation for Irish real estate, with returns rising from 1.3% in Q1 to 5.7% in the fourth quarter, and it is encouraging to see capital growth already spreading out of the central Dublin office markets.
“While the recovery remains in its infancy, the reforms made by the government in 2012 regarding the property sector have done much to restore confidence and stability for investors, and hopefully 2013 will be remembered as the year that the Irish property market finally shook off the dark days of the downturn.”