Houses prices across the State were up over 8 per cent in the 12 months to the end of February the latest figures from the Central Statistics Office (CSO) show and although prices in Dublin fell for the second consecutive month, year-on-year increase of more than 13 per cent were recorded in the capital.

The official data shows that property prices in Dublin fell by 0.6 per cent last month with prices outside Dublin 0.9 per cent higher than they were a month earlier.

The national average increase of just over 8 per cent in the year to the end of February has been driven largely by activity in the Dublin market last year. It is the fastest pace of growth in prices since June 2007.

Despite the monthly fall, Dublin prices were 13.3 per cent higher in the year to February while prices outside Dublin were 4.3 per cent higher than they were in February 2013.

A full recovery is still a long way off with prices in Dublin now 50 per cent lower than they were their highest level in February 2007 while the decline in property prices elsewhere in the State has been slightly less precipitous and currently stands at 46.4 per cent.

Meanwhile, a new report on the commercial property market shows that there was a turnaround in 2013 and it has continued in the first quarter of this year.

According to the Society of Chartered Surveyors Ireland (SCSI) Commercial Property Review and Outlook 2014 there was a 23 per cent increase in take-up in the office market last year while prime office rents have increased by up to 10 per cent over the first three months of 2014 driven by strong demand from Foreign Direct Investment companies.

The report indicates that prime office rents in Dublin are now priced between €350-€377 per sq metre and that the vacancy rate in Dublin City Centre is around 9 per cent.