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Ireland's property market continues its remarkable surge in 2025, with prices climbing at their fastest pace in eight years.
Annual growth rates of 8-12% across most markets are being driven by severe supply shortages, with fewer than 10,000 homes currently for sale nationally. The median property price has reached €360,000, marking a substantial 35-37% increase from pre-pandemic levels.
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Property prices in Ireland are definitively rising, with the national median reaching €360,000 and annual growth of 8.1% - the strongest increase in eight years.
The combination of record-low housing supply (fewer than 10,000 properties for sale), declining mortgage rates (averaging 3.79%), and robust demand from both domestic and international buyers ensures continued price growth throughout 2025 and beyond.
| Metric | Current Value | Year-on-Year Change |
|---|---|---|
| National Median Price | €360,000 | +8.1% |
| Dublin Median Price | €475,000 | +7.5% |
| Properties for Sale | <10,000 | -17% |
| Average Mortgage Rate | 3.79% | -0.5% |
| Price vs Pre-Pandemic | +35-37% | Significant gain |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What are current property prices across Ireland as of June 2025?
The median dwelling price in Ireland has reached €359,999 as of January 2025, though significant regional variations exist across the country.
Dún Laoghaire-Rathdown commands the highest median prices at €662,349, while Leitrim offers the most affordable options at €180,000. Dublin's average asking price has climbed to approximately €450,000, with prime areas exceeding this figure due to competitive bidding. The national average listed price stands at €346,048, though actual transaction prices typically run higher as multiple offers drive up final sale amounts.
South Dublin remains the most expensive region, with Blackrock (A94) properties averaging €743,500, while border counties and rural areas provide more budget-friendly alternatives for buyers seeking value.
How much have residential property prices increased in the past 12 months?
Ireland's property market has recorded its strongest annual growth in eight years, with the Residential Property Price Index climbing 8.1% through January 2025.
Some market reports indicate even steeper increases, with asking prices surging 11.6% year-over-year. This represents the second-highest inflation rate recorded since mortgage regulations were implemented a decade ago, surpassed only by the 11.7% spike in early 2017. The acceleration marks a dramatic shift from the moderate 3-5% annual increases that characterized the market in recent years.
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This rapid appreciation reflects the perfect storm of limited supply, strong demand, and improving mortgage conditions.
Which regions in Ireland are seeing the fastest property price growth right now?
Property prices outside Dublin are now rising faster than in the capital, reversing historical trends.
Border counties including Cavan, Donegal, Leitrim, Monaghan, and Sligo lead with 12.7% annual growth as affordability seekers migrate from expensive urban centers. Limerick follows closely at 13.8% growth driven by urban regeneration projects, while Galway's medical technology sector expansion pushes prices up 13.2%. The rest of Leinster excluding Dublin has surged 13.4%, the highest rate since early 2017.
| Region | Annual Price Growth | Key Driver |
|---|---|---|
| Border Counties | 12.7% | Affordability seekers |
| Limerick | 13.8% | Urban regeneration |
| Rest of Leinster | 13.4% | Dublin overflow effect |
| Galway | 13.2% | Medical tech growth |
| Cork | 9-10% | Pharma expansion |
| Dublin | 7.5-8.3% | Supply constraints |
What property types are experiencing the biggest price increases in 2025?
Detached houses lead the market with 9.1% year-on-year growth, reflecting strong demand for space and privacy.
Semi-detached and terraced houses follow closely at 8.9% annual appreciation, while apartments lag behind at just 5.0-6.6% growth. New builds command premium prices due to mandatory nZEB (near Zero Energy Building) standards, with buyers willing to pay significantly more for energy efficiency. Properties with high BER ratings achieve 5-10% premiums over comparable homes with lower ratings.
The market clearly favors houses over apartments, with detached properties experiencing the strongest demand from families seeking gardens and home office space.
What are the current mortgage rates for homebuyers in Ireland?
Irish mortgage rates have declined from 2023 peaks but remain elevated compared to the ultra-low rates of 2020-2021.
The average rate on new mortgage agreements dropped to 3.79% by February 2025, down from 4.3% in 2023. Variable rates range from 3.04% to 4.85%, with the lowest rates available for high loan-to-value mortgages. Three-year fixed rates, the most popular choice among borrowers, span 3.7% to 4.5%. Green mortgages offer 0.2-0.5% discounts for properties with A or B energy ratings.
Following the ECB's January rate cut bringing the deposit facility rate to 2.75%, further reductions are anticipated with the next announcement on June 5, 2025.
Where did property prices increase the most compared to pre-pandemic levels?
Ireland's property market has experienced extraordinary growth since the pandemic, with national prices rising 35-37% above pre-pandemic levels.
Properties outside Dublin have surged 38-40% since 2019/2020, while Dublin itself has seen increases of 32-35%. Rural counties have recorded the most dramatic gains, with some areas up 45-50% due to remote work trends enabling city workers to relocate. Coastal towns command premium prices, with sought-after locations experiencing 40-60% appreciation. The national property price index has reached 191.3, now 16.9% above its previous peak in April 2007.
From the market trough in early 2013, prices have skyrocketed 160.7%, representing one of the strongest recoveries in Europe.
How does Ireland's current housing supply compare to demand in 2025?
Ireland faces a critical housing supply shortage with fewer than 9,300 second-hand homes available for purchase nationwide as of March 2025.
This represents a 17% year-on-year decline and the lowest inventory since records began in 2007. Annual housing completions reached approximately 33,000 units in 2024, falling far short of the estimated 44,000-53,000 needed to meet demand. The market maintains just 2.3 months of inventory compared to 6-8 months in a balanced market.
| Supply/Demand Metric | Current Level | Healthy Market Level | Gap |
|---|---|---|---|
| Properties for Sale | <9,300 | 25,000+ | -15,700+ |
| Annual Completions | ~33,000 | 44,000-53,000 | -11,000 to -20,000 |
| Months of Inventory | 2.3 | 6-8 | -3.7 to -5.7 |
| Monthly New Listings | ~3,000 | 5,000+ | -2,000+ |
What impact is the US-EU trade situation having on Irish property prices?
The potential US-EU trade war poses significant risks to Ireland's property market given the economy's heavy reliance on American multinationals.
Tech and pharmaceutical companies, which employ thousands of high-income workers driving housing demand, could reduce their Irish operations if trade tensions escalate. The Biden administration's technology export restrictions could squeeze investment flows into Ireland, affecting employment and salaries. Construction costs might also increase due to tariff-affected materials, further constraining supply.
However, experts note that while trade disruptions could slow price growth, Ireland's fundamental housing shortage would likely prevent any significant price declines in the near term.
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What are property price forecasts for 2026 and beyond?
Industry analysts project continued but moderating price growth, with 4.5-6% increases expected through the remainder of 2025.
For 2026, forecasts indicate 4-5% annual growth as supply gradually improves and ECB rate cuts stimulate buyer activity. The Society of Chartered Surveyors Ireland anticipates "a shift towards more balanced growth expectations" as the market matures. Looking further ahead, 2027-2028 should see 3-4% annual appreciation, with growth potentially slowing to 2-3% by 2029-2030 as supply and demand approach equilibrium.
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Key risks include global economic shocks, unexpected interest rate increases, or a sudden surge in housing supply.
Which specific property features are commanding premium prices in 2025?
Energy-efficient features dominate buyer preferences in 2025, with A-rated BER properties commanding 10-15% premiums over standard homes.
Heat pumps add 5-8% to property values, while solar panels contribute another 5-7% premium. The shift to remote work has made dedicated home office spaces valuable, adding 4-6% to sale prices. Properties near public transport links achieve 8-12% premiums, reflecting ongoing commuting needs. Electric vehicle charging points, smart home features, and private outdoor spaces also command modest premiums of 3-10%.
Green mortgages offering lower rates for efficient homes further incentivize these features, making energy upgrades a sound investment.
How affordable are Irish properties compared to household incomes in June 2025?
Property affordability has reached critical levels with average prices now 8 times average annual earnings, the highest ratio since 2009.
First-time buyers face significant challenges, needing an average deposit of €72,000 (20% of €360,000 median price). Monthly mortgage payments consume 35-40% of typical dual-income household budgets, effectively pricing out single buyers in most urban areas. Dublin properties cost 10-12 times average local salaries, while Cork and Galway reach 8-9 times. Regional towns offer slightly better affordability at 6-7 times salaries, with rural areas the most accessible at 4-5 times.
Despite these challenges, Ireland's robust labor market with strong wage growth continues supporting higher prices, though increasingly concentrated among higher earners.
What immediate factors could change Ireland's property price trajectory in late 2025?
Several key factors will determine whether current growth continues through late 2025 and beyond.
Supporting continued growth are anticipated ECB rate cuts, with the next announcement on June 5, 2025 expected to bring further relief to borrowers. Population growth through immigration, robust employment in tech and pharma sectors, and the extended Help-to-Buy scheme through 2029 provide ongoing demand support. The rental market's 7.7% inflation also pushes more buyers into purchasing.
It's something we develop in our Ireland property pack.
Potential headwinds include US-EU trade tensions affecting foreign investment, global recession risks, unexpected interest rate changes, or buyers finally reaching their affordability ceiling at current price multiples.
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.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Ireland are definitively rising, with the market experiencing its strongest growth in eight years at 8.1% annually.
The combination of severe supply shortages (fewer than 10,000 homes for sale), declining mortgage rates (3.79% average), robust demand, and continued economic strength ensures sustained price appreciation throughout 2025 and likely into 2026, though the pace may moderate to 4.5-6% as the market matures.
Sources
- Central Statistics Office - Residential Property Price Index January 2025
- Team Lorraine - Irish Property Market Forecast For 2025
- Global Property Guide - Ireland Real Estate Price History
- World Property Journal - Ireland Real Estate News 2025 House Price Report
- Irish Examiner - Property Prices Latest Updates
- Howley Souhan - Irish Property Prices Headed 2025
- Howley Souhan - Dublin Property Demand Booming 2025
- Trading Economics - Ireland House Price Index YoY
- Society of Chartered Surveyors Ireland - Press Release
- MyHome.ie - Q1 2025 Property Report