Euro-zone house prices look to be heading higher, although the pace could be weaker than in previous cycles, the European Central Bank said.

Prices in the euro zone as a whole rose 1.1% on the year in March. Ireland led the way, with prices there surging 16.8%. The markets in Austria, Germany and Spain also showed gains.

The ECB expects that low interest rates and a strengthening labour market will mean house prices will continue to rise.