Household wealth in Ireland has passed the €1 trillion mark for the first time, according to a report published today by the National Irish Bank.
The study found that despite a far slower rate of growth in 2007, the average Irish household boasted a wealth holding of €674,000 at the start of the year.
Excluding owner-occupied housing, the figure was €352,000 - with the corresponding level of household debt at €127,000.
But The Emerald Isle - The Wealth Of Modern Irelandreport warned that much of the wealth of the nation was tied up in housing.
Owner-occupied housing accounted for almost half of all wealth, while another fifth was housing held as an investment. Much of the remainder is accounted for by stocks and shares.
Garvan Callan, head of wealth management at National Irish Bank, said: "The extraordinary rise in the wealth of Irish households was fuelled by the take-off of the Celtic Tiger economy, resulting in higher incomes and higher savings.
"However the single most important driver of wealth in Ireland has been the increase in property values."
Despite the windfall, recent weakness in property and equity markets contributed to a decline in the rate of growth in aggregate wealth from 16 per cent in 2006 to less than 3 per cent in 2007.
The overall increase in wealth was a result of continued savings, which was sufficient to offset the decline in capital values. Mr Callan said householders have done incredibly well on the back of the rise in house prices, although the experience of 2007 should act as a wake-up call.
"If Irish people want to achieve good investment returns in the future, while also protecting against the volatility that we saw in 2007, they will need to invest in a broader pool of assets than they have in the past," he added.
PA