The latest Metro Area Outlook by Moody's Analytics has reported that the economies and property markets of the largest metro areas in Europe vary widely in terms of performance at the moment but that overall employment levels and property prices are improving.

Dublin's recovery is strengthening. The number of unemployed has decreased over the past few months and is down around 10% compared to this time last year.

The unemployment rate fell to 8.6% in the last quarter of 2014, down from 10% in previous quarters. The decrease reflects the rising number of employed rather than discouraged workers dropping out of the labour force.

The solid growth together with limited increases in the supply of houses has driven up house prices at double-digit rates in the city, accelerating to an annual rate of growth above 20% in the second half of 2014. Although the index is still 40% below its peak reached in 2007, the fast pace of price appreciation has started to worry the central bank, which introduced new mortgage lending restrictions in January.