South city centre, Temple Bar, Pembroke

Down 35%

It is a long-held belief that properties in Dublin 2 have been among the most over-inflated. No surprise, then, that it has been among the worst hit by the crash. Prices fell by up to 35%, with former council houses seeing the biggest cuts. A three-bed former council house bought for €580,000 this time last year is available for €375,000.

Investors have taken a step back but still account for around a fifth of purchases. The rental market peaked in mid-2008 then fell because of reduced inward migration and increased supply. Initially this resulted in stagnation and subsequent moderate rental deflation. Rents here have held up better than in most other locations, though. The agent takes the view that prices will rally slightly by the end of next year .

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