Irish property prices are on the way back, driven by a resurgent Dublin market.

After five years of plunging prices, three straight months of growth have been reported, according to the Irish Independent.

The September rise was the biggest single month since 2007. Prices have halved since then.

Dublin led the way with a 2.4 per cent increase in prices, noticeable especially in good residential areas.
Real Estate agency Lisney stated that there was more demand in Dublin than houses for sale.

The average house price in Dublin is now $260,000.

Economist with NCB Stockbrokers Philip O'Sullivan stated that rural areas outside the capital however were still depressed.

Alan McQuaid of Merrion Stockbrokers said stability had returned. "Anecdotal evidence too would point to signs of pent-up demand for family homes, especially in certain areas of Dublin," he said.

"Although the latest figures are encouraging, it is too early to say whether house prices are now on a steady upward rise."

Lisney's head of research Aoife Brennan stated: "The biggest problem we have in these areas is the lack of supply. In the 12 months to the end of August, there were 52pc fewer houses on the market and availability was falling by between 3pc and 6pc each month."

Irish house prices fell in value at the second-fastest rate in Europe in 2012Google Images