Belfast Telegraph

Property values plummet by 10.8% in Republic of Ireland

House prices in the Republic are falling at a double-digit rate, but property values in other countries favoured by UK buyers are showing signs of stabilising, research indicated today.

The average cost of a home in the Republic dropped by 10.8% during 2010 as the market suffered from the fallout of the country's economic problems, according to estate agent Knight Frank.

The drop was the biggest recorded for the total of nearly 50 countries looked at by the group. The pace of the falls are also showing little sign of easing, with property losing 3.5% of its value during the final quarter alone.

Steep price falls were also seen in Dubai, with property values diving by 6.1% during the third quarter of 2010, the latest quarter for which figures are available.

But there was better news for those who have bought second homes in France, with house prices in the country rising by 9.5% during 2010.

The more conservative French mortgage market means that house prices have been hit less hard by the credit crunch than some countries.

House prices were only 1.4% lower in Italy at the end of 2010 than at the beginning of the year.

Property values in Spain also showed signs of stabilising during the fourth quarter, edging down by 0.4% to leave them 3.5% down for the year.

Hong Kong saw the strongest annual price growth of 20%, followed by Latvia at 16.9%, and Israel at 16.2%.

The UK came 31st out of 49 countries, with prices edging ahead by 0.7% during the whole of 2010 but falling by 2.5% during the final three months of the year.

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