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Thinking about buying a 3-bedroom apartment in Dublin's Temple Bar? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Rathmines or Ballsbridge where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Ireland Property Pack.
Will property prices increase in Ireland in 2025?
Yes, property prices in Ireland are expected to rise in 2025, driven by a combination of strong demand and limited housing supply.
Backed by our fresh, in-depth market analysis, we’re confident that Ireland remains an attractive market for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the primary factors driving Ireland's property market growth are expected to persist.
Demand, particularly in urban areas like Dublin, continues to outpace supply, making significant price declines unlikely. Additionally, Ireland's growing economy and its appeal as a tech and business hub continue to attract buyers.
Signals pointing to a property price increase in Ireland
Here are some factors suggesting prices could increase:
The ongoing housing shortage, particularly in major cities, is expected to continue into 2025, with new construction not keeping pace with demand. This imbalance is likely to drive prices upward.
Ireland's strong economic growth, driven by sectors like technology and pharmaceuticals, is expected to continue, increasing the purchasing power of potential buyers and supporting higher property prices.
Government initiatives aimed at increasing housing supply, such as incentives for developers and streamlined planning processes, may not fully materialize by 2025, maintaining upward pressure on prices.
The influx of international companies setting up operations in Ireland, particularly in Dublin, is expected to continue, attracting a skilled workforce and increasing demand for housing.
Ireland's appeal as a destination for remote workers and digital nomads is growing, with more people seeking to relocate to the country, further boosting demand for housing.
The anticipated stabilization of interest rates in 2025 could make financing more accessible, encouraging more buyers to enter the market and supporting price increases.
The limited availability of rental properties is pushing more people towards homeownership, increasing demand and contributing to rising property prices.
Signals pointing to a property price decrease in Ireland
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make mortgages more expensive, reducing affordability for some buyers and potentially cooling demand.
Economic uncertainties, such as inflation and global market volatility, could impact consumer confidence and spending power, potentially dampening demand for property.
If government policies aimed at increasing housing supply are more successful than anticipated, the increased availability of homes could help stabilize or reduce prices.
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If property prices go up in Ireland, how much would they increase by?
If real estate prices in Ireland were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in dynamic markets like Ireland appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom cottage in Dublin for 350,000 euros today, don't be surprised if it's priced between 360,500 and 374,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Irish real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Cottage (60 sqm / 646 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Modern Apartment (75 sqm / 807 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €1,000,000 | €1,030,000 | €1,050,000 | €1,070,000 |
| Studio (30 sqm / 323 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Loft (80 sqm / 861 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Townhouse (150 sqm / 1,615 sqft) | €800,000 | €824,000 | €840,000 | €856,000 |
| Investment Property (50 sqm / 538 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
Everything you need to know is included in our Property Pack for Ireland
If real estate prices go up in Ireland, which areas are likely to see the biggest increases?
Today, people who want to move to Ireland seek the charm of its landscapes and cities, but they also desire modern conveniences and vibrant social scenes, which Dublin's Docklands delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Smithfield has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Irish market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Dublin's Docklands | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Ballsbridge | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Dublin. |
| Rathmines | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Sandyford | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Clontarf | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Howth | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Smithfield | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Blackrock | Medium-High | Its proximity to Dublin, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Phibsborough | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Dalkey | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Temple Bar | High | Upcoming restoration of cultural landmarks and high-profile projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Ireland?
In 2025, Ireland's real estate trends focus on tech-smart, energy-efficient homes, larger suburban houses for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Homes:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Houses in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major cities like Dublin and Cork are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like gardens, patios, or balconies have become highly desirable. In urban areas of Ireland, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Ireland's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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