Authored by the expert who managed and guided the team behind the Ireland Property Pack
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What will happen in Dublin’s real estate market? Will prices go up or down? Is Dublin still a hotspot for foreign investors? How is Ireland’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Dublin, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Dublin’s rental prices will keep rising steadily as demand exceeds supply
The rental market in Dublin has been experiencing a steady increase in prices, primarily due to the significant rise in rental costs over the past few years. For instance, the average rent in Dublin climbed by 43% compared to pre-Covid levels, reaching an average of €2,476 per month. This substantial increase highlights the ongoing trend of rising rental prices.
One of the main reasons for this trend is the severe shortage of rental properties in Dublin. In 2023, there were just over 2,000 homes available to rent, which is significantly lower than the historical average of almost 4,400 homes. This limited rental inventory creates a highly competitive market, allowing landlords to charge higher rents.
Additionally, Dublin's population growth and urban expansion have contributed to the high demand for rental properties. The city's population has been growing rapidly, with projections indicating a 20-25% increase by 2040. This growth, combined with the city's economic expansion, draws more international workers and students, further increasing the demand for rental housing.
Sources: Dublin City Development Plan, CBRE Ireland Real Estate Market Outlook 2024, Gript.ie
2) Demand for rentals near Dublin universities will grow as more international students arrive
The influx of international students into Dublin has been significant, with enrollment numbers reaching an all-time high of 40,400 in the 2023/24 academic year. This represents a 15% increase over the previous year, indicating a growing number of students coming to study in Dublin.
As more international students arrive, the demand for student accommodation naturally rises. Reports have highlighted that the availability of on-campus housing is crucial for attracting these students, especially in cities like Dublin. However, the demand for bed spaces far exceeds the available supply, leading to housing shortages near university campuses.
International students often prefer to live close to their educational institutions for convenience and to enhance their academic experience. This preference further drives the demand for rental properties near universities. Additionally, the rental market in Dublin is highly competitive, with low vacancy rates, which means that landlords can charge higher rents due to the high demand.
Sources: ICEF Monitor, Government Report, ApplyBoard Insights
We made this infographic to show you how property prices in Ireland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Demand for homes in Dublin will grow as new parks attract buyers seeking a healthier lifestyle
In recent years, Dublin has seen a significant push towards enhancing its green spaces and parks. The Dublin City Development Plan 2022-2028 has been a major driver, focusing on regenerating large public parks and creating new green areas. This initiative aims to improve the city's environment and the health and wellbeing of its residents.
Studies have shown that green spaces can positively impact property values. For instance, an ESRI study found that a 10% increase in park space within 2km of a home can boost its value by 5.5%. This means that green spaces add substantial value to properties in Dublin, making them more attractive to potential buyers.
Moreover, surveys from 2024 indicate that buyers are increasingly looking for homes near parks and green spaces. This trend is largely driven by a desire for healthier lifestyles and better living environments. As more people prioritize health and wellness, the demand for properties close to green spaces is expected to rise.
Additionally, the Dublin City Development Plan emphasizes the importance of accessible outdoor recreational areas. These spaces are not only expected to attract more residents but also enhance the overall quality of life in the city. The plan also includes initiatives to track and promote the development of green spaces, ensuring that these areas continue to grow and benefit the community.
Sources: ESRI, Dublin City Development Plan, Real Estate Market Insights
4) Property values in Dublin 8 will rise unexpectedly as urban regeneration projects progress
In recent years, Dublin 8 has been undergoing significant changes, and these transformations are expected to lead to a surprising increase in property values. One of the key factors is the Donore Project, a major development that began its enabling works in 2023. This project includes 543 homes, a new creche, community spaces, and landscaped public areas, with initial works scheduled to run until December 2024.
The Land Development Agency and Dublin City Council are heavily investing in urban regeneration projects like the Donore Project. Their goal is to transform the former St. Teresa’s Gardens site into a sustainable and integrated neighborhood, which represents a significant investment in the area. This kind of development not only improves the local infrastructure but also enhances the overall appeal of the neighborhood.
Moreover, the housing shortage in Dublin has been driving up demand for properties in central locations like Dublin 8. This demand is further fueled by Dublin's economic growth and its attractiveness to young professionals and families. As more people are drawn to the area, property values are expected to rise.
Sources: LDA Donore Project, Unique Media, LDA Digital Hub Vision
5) Investor interest in Dublin's Northside will grow as better infrastructure improves connectivity and accessibility
In recent years, the Northside of Dublin has become a focal point for investors, largely due to significant infrastructure improvements. The MetroLink project, which connects the Swords/Airport corridor to the city center, has been a game-changer. This high-speed metro system has reduced congestion and improved public transport efficiency, making the Northside more appealing to both residents and businesses.
Another key development is the BusConnects Network, which introduced a new orbital route for Dublin's Northside. This route enhances connectivity to various transport services, including commuter and inter-city rail, Luas, and city buses. Such improvements in travel options and accessibility have significantly boosted the area's attractiveness to investors.
Moreover, the DART+ Coastal North project has extended the electrified rail network, improving train frequency and reducing travel times. This has further enhanced connectivity for residents and businesses on the Northside, making it a more desirable location.
Sources: Highways Today, National Transport Authority, Gov.ie
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6) Stricter rent controls in Dublin will reduce rental investment profitability
The introduction of stricter rent control measures in Dublin is likely to affect the profitability of rental investments. Rent control measures, such as the rent pressure zones (RPZs) introduced in 2016 and further restrictions in 2021, have capped annual rent increases at 4% in designated areas, including Dublin. Despite these measures, rents have continued to rise, indicating that while rent control may stabilize prices, it does not necessarily reduce them. For instance, in Q1 2024, new tenancy rents in Dublin rose by 6.3%, while existing tenancy rents increased by 5.9% nationally, with Dublin experiencing a 5.2% increase.
Property investors have expressed concerns about reduced profitability due to rent controls. A survey by the Society of Chartered Surveyors Ireland (SCSI) found that the introduction of permanent rent control measures was ranked as the highest negative measure impacting the rental market supply. This suggests that property investors are worried about reduced profitability, as rent controls can discourage landlord investment in the rental market. Ronan O’Hara from SCSI stated, “If this goes ahead, it will discourage landlord investment in the rental market. Similarly, anyone involved in buy-to-let properties will exit the market, and it’s likely a lot of owner occupiers will purchase them. This might be good news for them but not for those renting as rents will continue to rise.”
Real estate agencies have also noted that the government's decision to extend the 2% rent cap until December 2025 has been criticized for damaging the rental supply. These restrictions have curtailed rental supply and made the rental market more dysfunctional due to unintended consequences. The ESRI study found that almost half of tenancies in RPZs had rent increases above the 4% cap, indicating that while rent control aims to stabilize prices, it often fails to do so, leading to reduced rental income for landlords.
Sources: SCSI, Housing Ireland, RTB
7) Demand for properties in Dublin's flood-prone areas will drop as climate change worries increase
Dublin is experiencing more extreme flooding events, with heavier rainfall and more severe incidents.
Because of this, insurance premiums for flood-prone properties are climbing. Owning a home in these areas is becoming pricier, making them less appealing to buyers. The average annual cost of inland flooding in Ireland is around €101 million, largely due to high-risk buildings that struggle to get insured.
Government reports, like the Dublin City Council's Climate Change Action Plan, highlight these climate risks, including increased flooding. Such reports are making people more aware and cautious about buying in high-risk zones.
Historically, properties in flood-prone areas lose value. Research, such as "The Effects of Flood Risk on the Irish Housing Market," shows that as flood risks increase, property values in these areas tend to drop.
As climate change concerns grow, the demand for properties in flood-prone areas of Dublin is expected to decrease. Buyers are becoming more wary of investing in these risky locations.
With more awareness and rising costs, the market for these properties is shifting. People are looking for safer investments, steering clear of areas with high flood risks.
Sources: University of Galway, Dublin City Council, Central Bank of Ireland
8) Foreign buyers will focus more on Dublin's suburbs for larger homes with outdoor spaces
In recent years, we've seen a noticeable shift in the real estate market, particularly in Dublin. As of 2023 and 2024, property prices in Dublin's city center have been on the rise, with a 2.7% increase expected in 2024. This has made the city center less attractive to investors, who are now looking elsewhere.
The pandemic has changed how we live and work, with more people working remotely. This shift has led to a growing demand for larger living spaces with outdoor areas, which are more readily available in suburban areas. People want homes where they can enjoy more space and have the flexibility to work from home comfortably.
Foreign investors are increasingly interested in Dublin's real estate market, particularly in suburban areas. These areas offer promising returns and impressive rental yields, making them attractive to investors. The growth in property prices in suburban areas, such as Dublin 10, 12, and 20, Howth, and Sutton, is forecasted to be around 5%, which is higher than the city center's average growth.
Sources: Unique Media, Global Property Guide
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Ireland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Dublin’s property market will change due to new rules encouraging sustainable building practices
In recent years, Dublin's property market has been significantly influenced by new regulations that promote sustainable building practices. These regulations have set ambitious targets for zero emission buildings, requiring all new public buildings to meet these standards by 2026 and all new non-residential buildings by 2028. This shift is part of a broader effort to reduce carbon emissions and promote energy efficiency in the construction sector.
Moreover, the demand for green-certified buildings has been on the rise. Ireland has become a leader in sustainable architecture, with a notable percentage of organizations expecting to undertake green projects. This trend is further supported by consumer surveys indicating a growing preference for eco-friendly homes. As a result, the Dublin office sector has seen a robust demand for sustainable buildings, while older structures face challenges of obsolescence and the need for repurposing.
Additionally, the Irish government has been actively promoting sustainable building practices through national policies and regulations. These efforts are complemented by increased investment in renewable energy solutions for homes, such as energy-efficient HVAC systems and green roofs. The introduction of green mortgages and financial products also supports this transition, making it easier for individuals to invest in sustainable properties.
Sources: Environment Ireland, Constructive Voices, CBRE Ireland, Savills Ireland
10) Property tax changes will affect investor interest in some Dublin neighborhoods
Changes in property tax policies can significantly influence the attractiveness of certain Dublin neighborhoods for investors. For instance, the increase in stamp duty rates for luxury properties over €1.5 million, introduced in Budget 2025, could deter investors from purchasing in these high-demand areas. This might lead to a reduction in property values in these neighborhoods, making them less attractive to investors looking for high returns.
Conversely, neighborhoods with properties below €1.5 million, where stamp duty rates remain unchanged, might maintain or even increase in value. This stability or potential growth in property values could make these areas more appealing to investors seeking tax-efficient investments. Additionally, investor surveys have shown a preference for tax-efficient locations, indicating that changes in property tax policies can directly impact investor decisions.
Furthermore, media coverage and expert opinions on property tax debates, such as those surrounding the Finance Act 2024, can shape investor strategies. These discussions highlight the implications of increased stamp duty rates, potentially shifting investment focus towards neighborhoods with more favorable tax conditions.
Sources: Budget 2025 – Property & Real Estate Key Measures, Local Property Tax – Public Consultation Phase Budget 2025
11) Interest in co-living spaces in Dublin will grow as younger people look for affordable, community-focused housing
Dublin's property prices have skyrocketed, making it tough for young professionals to find affordable homes.
With average rents hitting €1,733 a month, many are looking for cheaper options. Co-living spaces are stepping in as a popular choice, offering not just affordability but also a sense of community. These spaces are a hit with millennials and Gen Z, who value community-oriented living.
Most tenants in co-living setups are between 31 and 35 years old, showing a clear preference among younger generations. The trend isn't just local; cities like London have seen a 65% jump in co-living beds in 2023, hinting that Dublin might follow suit.
Single-person households are on the rise, making co-living appealing for those who want community without a long-term lease. This setup offers flexibility and a chance to connect with like-minded individuals, which is a big draw for many.
As Dublin's housing market continues to challenge affordability, co-living spaces are becoming a viable solution. They provide a blend of cost-effectiveness and social interaction, which is exactly what many young people are looking for.
With the success of co-living in other major cities, it's likely that Dublin will see a similar trend. The demand for these spaces is growing, driven by a desire for affordable and community-focused living arrangements.
Sources: Green Ocean Property Management, Knight Frank, IMS Connect
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12) Rental yields in Dublin’s city center will drop slightly as more people move to the suburbs for bigger homes
After the pandemic, many people are opting for larger living spaces that accommodate remote work and offer a better quality of life.
Remote work has given people the freedom to choose where they live, and many are leaving city centers for more spacious suburban environments. This shift is increasing the demand for suburban properties, which often provide more room and better conditions for working from home.
Suburban areas around Dublin, such as Dublin 10, 12, and 20, are experiencing population growth and rising property prices. These areas are becoming more attractive due to new housing developments that offer amenities like good transport links and community facilities.
Meanwhile, the rental market in Dublin's city center is seeing a slowdown in demand. This is partly because more rental units are available on the outskirts, making suburban living more appealing.
In these suburban areas, new housing developments are popping up, offering modern amenities and a sense of community that city centers struggle to match.
As more people move to the suburbs, rental yields in Dublin's city center are expected to decline slightly, reflecting the shift in living preferences.
Sources: Unique Media, Relocity, Statista
13) Demand for homes in Dublin's commuter belt will rise as remote work lets people live farther from the city center
In recent years, particularly in 2023 and 2024, remote work has become a significant trend in Ireland. A large portion of the workforce, about 56%, now operates in a hybrid work setup, while 29% work entirely remotely. This shift has allowed people to consider living further from their workplaces, as they no longer need to commute daily to an office in the city center.
At the same time, property prices in Dublin's city center have been on the rise, with the average price of a three-bedroom semi-detached house increasing by 7.4% annually. This makes living in the city less affordable for many, prompting them to look for more cost-effective options in the commuter belt areas.
Moreover, surveys have shown that people now prefer larger living spaces and gardens, which are more readily available in suburban and rural areas. The commuter belt offers these amenities, making it an attractive option for those who can work remotely and want more space for their families and home offices.
Sources: Breaking News, Mason Alexander, Irish Times
14) Demand for accessible and single-story homes in Dublin will grow as the population ages
As we look back at the past few years, particularly 2023 and 2024, we can see a clear trend in Dublin's demographics. The number of people aged 65 and over has been steadily increasing, with a 19% rise noted between 2016 and 2022. This trend is expected to continue, with projections indicating that by 2030, 20% of Ireland's population will be aged 65 and over.
With people living longer—women up to 84 years and men up to 81 years on average—there's a growing need for housing that accommodates the needs of older adults. Surveys have shown that many older adults prefer smaller, easier-to-manage homes. These homes are often single-story and include features like wider doorways to enhance mobility and safety.
Despite this demand, the supply of accessible and single-story homes in Dublin has been tight. As of May 2024, there were just over 2,000 homes available to rent. However, initiatives like the South Dublin County Council's plan to deliver up to 600 new age-friendly homes by 2026 are steps in the right direction.
Sources: CSO Ireland, South Dublin County Council
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Ireland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
15) Dublin’s property prices will rise moderately as more international tech companies move in
In recent years, Dublin's property market has shown signs of moderate price increases, largely due to the city's growing appeal to international tech companies. The tech sector in Dublin has been booming, leading to significant employment growth. This influx of tech talent has increased the demand for housing, as more people move to the city for job opportunities.
Additionally, Dublin's population has been steadily growing, with a 4.3% increase from 2016 to 2021. This population growth has further fueled the demand for housing, making the market highly competitive. The low vacancy rate of around 1.5% in 2023 indicates that there are not enough homes available to meet this demand, allowing landlords to charge higher rents.
Moreover, the supply of properties for sale in Dublin has been consistently lower than the demand. In Q1 2024, there was a 27% decrease in the number of properties listed for sale compared to the previous year. This shortage of available homes has been a constant feature in the market, contributing to the rising property prices.
Sources: Global Property Guide
16) Property prices in Dublin's city center will stabilize as more people move to the suburbs after the pandemic
Dublin's city center property prices have stabilized as more people choose suburban living.
With the rise of remote work, 32% of firms now offer flexible work models, allowing people to live outside the city. This shift means less demand for expensive urban housing. Families are drawn to the suburbs for larger homes and gardens, a trend that has grown post-pandemic.
Suburban areas like Sandyford and Lucan are becoming hotspots. Their appeal lies in proximity to green spaces and schools, making them ideal for families. This has led to a rise in suburban property prices, while city center transactions have slowed.
Interestingly, the demand for city center rentals is dropping. Even though rental yields in Dublin are expected to rise, more people prefer the space and comfort of suburban homes. This trend is reshaping the housing market.
In early 2023, there was a noticeable decrease in urban home purchases. This aligns with the growing preference for suburban living, as people seek more space and a quieter lifestyle.
Sources: Sell My Home Ireland, Mason Alexander, Global Property Guide
17) Property values in Dublin will rise in areas with improved public transport access
The expansion of Dublin's public transport network is set to increase property values in previously less accessible areas. This is not just a prediction; it's based on historical data and trends observed in the past. For instance, the Luas light rail system has already shown a significant impact on property prices in Dublin. Homes close to Luas lines have experienced an additional 15% rise above the general increase in prices over the last two years.
Moreover, the Dublin City Council Transport Plan from 2023 highlighted significant investments in transport projects, such as the Luas Cross City and improvements to the cycle network. These projects are expected to fundamentally change public transport, walking, and cycling provision in the city. This change is anticipated to lead to increased property values, particularly in suburban areas that will benefit from better access to the city center.
Additionally, the National Planning Framework supports compact and sustainable growth, which includes investing in public transport to facilitate Transport Oriented Development. This framework aims to maximize employment, public services, and leisure space in close proximity to high-quality transport services, thereby increasing property values in these areas. The correlation between proximity to public transport and higher property values is further supported by studies, such as the one by Daft.ie, which found that the value of a home in Dublin increases by an average of 6% if it is situated next to a Dart or Luas stop.
Sources: Irish Examiner, Dublin City Council Transport Plan 2023, National Planning Framework
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.