National property prices are set to rise by an average of 8% this year, according to the Society of Chartered Surveyors Ireland.
The SCSI's Annual Residential Property Review and Outlook Report reveals that 92% of surveyors said the price expectations of sellers had increased during 2017, up from 86% the previous year.
The survey predicts that despite the introduction of rental caps in Dublin and Cork, residential rents will also rise on average by 8% nationally.
Most surveyors believe the rental market is in crisis and that the rental cap has forced a significant number of landlords to exit the market.
Chartered surveyors in the Leinster region, excluding Dublin, anticipate an increase of 10% for two bed apartments and a rise of 9% forecast for three bed semis.
71% of residential surveyors said market activity increased during 2017, up from 60% the previous year.
John O'Sullivan from the SCSI's Residential Agency Group said that while the forecast of 8% was probably on the conservative side compared to other predictions, the figure was still too high and not sustainable in the long term.
He said that until the supply situation was addressed, competition among buyers, a rising population and continuing economic growth would ensure price increases continued.
"Surveyors around the country are hugely concerned at the low level of affordable housing which is being constructed for middle income earners. Many believe this is because it is simply not economically viable to build affordable new homes in urban areas, where demand is highest," Mr O'Sullivan said.
"While surveyors outside Dublin believe the 'Help to Buy' scheme is boosting supply by encouraging housing construction, those in Dublin believe it has had less of an impact," he added.
On the rental market, chartered surveyors believe there will be a significant lack of rental properties of all sizes in 2018, with 81% of surveyors experiencing an increase in rental demand by tenants in the last 12 months.
Mr O'Sullivan said it is estimated that for every three landlords who are selling their buy to let property in Dublin only one new landlord is entering the market.
He pointed out that two thirds of private landlords own just one property and increasingly they seem to be of the view that it is simply more hassle than its worth.
"Whether it's due to the rent cap, complex regulations, a punitive tax regime, or a combination of all three, they are voting with their feet," he added.
