The Irish property bubble was the speculative excess element of a long-term price increase of real estate in the Republic of Ireland from the early 2000s to 2007, a period known as the later part of the Celtic Tiger. In 2006, the prices peaked at the top of the bubble, with a combination of increased speculative construction (financed almost entirely by senior debt) and rapidly rising prices; in 2007 the prices first stabilised and then started to fall until 2010 following the shock effect of the Great Recession. By the second quarter of 2010, house prices in Ireland had fallen by 35% compared with the second quarter of 2007, and the number of housing loans approved fell by 73%.[1][2]
The collapse of the property bubble was one of the major contributing factors to the post-2008 Irish banking crisis.
House prices in Dublin, the largest city, were briefly down 56% from their peak and apartment prices down over 62%.[3] For a time, house prices returned to twentieth century levels and mortgage approvals dropped to 1971 levels.[4]
