Dublin House prices are expected to rise by up to 7% this year, according to the latest 'My Home' report.
The findings also suggest prices are expected to rise at a slightly slower pace due to a tightening of the Central Bank lending rules.
Last year was a year of robust inflation, with prices in the capital increasing by 11.1%, .9% above the national average.
The median asking price for new sales in Dublin came to €330,000, compared with €195,000 in the rest of Ireland.
As a result, those buying homes here have been taking out higher levels of mortgage debt.
The author of the report, Conall MacCoille, Chief Economist at Davy, said the tighter Central Bank rules will serve to slow house price inflation in Dublin.
“Asking prices have fallen in the final quarter of each of the last five years before bouncing back in the Spring and we see that pattern continuing in 2018. However due to the Central Bank tightening its mortgage lending rules we believe house price inflation in more expensive areas, like Dublin, will slow somewhat to around 6 or 7%.
“Homebuyers in Dublin have been taking out higher levels of mortgage debt, but with the availability of credit constrained, further price increases will also be curtailed slightly in 2018. However double-digit price gains are likely to continue outside the capital where the recovery began later, prices are cheaper and there is still scope for leverage on mortgage lending to rise.”