Record levels of house and apartment construction could result in a high number of vacant investment properties according to a report on the property market published today by AIB.
Just over 26% of the houses and apartments bought in the Irish property market over the past six years were bought as second homes, holidays homes or investments.
This part of the market, according to the report, ‘remains vulnerable to any withdrawal by investors’ and ‘is likely to decline.’
The report states that if supply continues at its current level, the slowdown in demand ‘could result in an increasing number of vacant investment properties.’
But overall the bank is forecasting that the property market will move to what it describes as more ‘moderate and sustainable’ growth patterns in supply and prices over the next few years.
It is pencilling in a decline in house price inflation to 7% by the end of this year.
