Almost half of non-private property sales are snapped up by the State, a new housing market report shows, writes Sarah Slater.

State spending on property grew from 34% in 2022 to 47% of the market in 2023, a Sherry Fitzgerald report shows.

Government money of more than €2.1bn is propping up high-property prices when it should be building new housing of its own, one campaigner said.

The Irish Property Capital Flows 2024 report provides an analysis of money going into the market last year, including total spend on residential properties with single-asset transactions and multi-family or block sales.

Capital flows into the Irish property market grew by 13% last year to hit €28.7bn compared to €25.5bn in 2023 and reflects growth in both commercial and residential property spend.

In particular, commercial property recorded a substantial increase during the year, rising 75%, to hit €4.5bn.

In Dublin the total capital flow increased to 50% to hit €14.3bn.

At 9% Cork had the second-highest proportion, while Kildare and Wicklow each accounted for 5% of total turnover.

Housing campaigner David Hall said: “The State needs to build more houses not buy them, which is interfering with the property market.

“They were able to do it in the 1960s, 1970s and 1980s. Why can’t they do that now?

“We are running out of time as there isn’t an endless supply of emergency accommodation and we already see that with more than 15,000 people on our streets.

“They [the Government] are the ones who are stopping first-time buyers from entering the market by such actions.”