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What will happen in Ireland’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 estate agents, property developers, and clients who buy properties in Ireland, 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) Ireland’s home prices will keep going up because demand is high and supply is low
Ireland is grappling with a housing shortage as its population continues to grow.
The Central Bank of Ireland estimates that 34,000 new homes are needed each year to meet this demand, but the supply is falling short. This gap makes it tough for people to find affordable places to live, whether they're looking to rent or buy. Even with the government boosting its housing budget, the number of homes for sale is dwindling, making the situation worse.
In cities like Dublin, Cork, and Galway, the shortage is even more pronounced. Property prices are climbing as buyers scramble for the few available options. The government's efforts to increase housing have not yet met the growing demand, and experts say more homes need to be built annually.
Adding to the pressure, international buyers are entering the market, further driving up demand. This influx, along with reports of bidding wars and homes selling above asking prices, underscores the fierce competition. The rental market isn't any easier, with high demand keeping rents high, especially in major urban areas.
For those considering buying property in Ireland, it's crucial to understand that the market is highly competitive. The limited supply and high demand mean that prices are likely to continue rising. This trend is particularly evident in urban centers, where the housing crunch is most severe.
Sources: Global Property Guide, Central Bank of Ireland, Euronews, Team Lorraine
In this video, we see evidence of Ireland's rising property prices driven by inadequate supply and growing population needs.
2) Rents in Ireland's commuter towns will rise as people look for cheaper living outside big cities
In Ireland, property prices in cities like Dublin are sky-high, making urban living tough for many.
Because of this, people are looking at more affordable homes in commuter towns. For example, rents outside Dublin jumped by 10.6% in 2023, showing how popular these areas are becoming. Many folks are moving from Dublin to nearby counties like Kildare and Meath, seeking better deals.
Living in Dublin is pricey, so commuter towns offer a cheaper alternative. These areas are not only more affordable but also provide more space, which is a big draw for families and individuals alike.
Transportation improvements have made commuting easier, so living in these towns and working in the city is now more feasible. This convenience is a major factor in their growing popularity.
As more people move to these areas, rents in commuter towns are expected to rise. This trend is driven by the search for affordable living options outside the expensive city centers.
With the ongoing demand, investing in property in these towns could be a smart move. The combination of lower costs and improved transport links makes them an attractive option for both buyers and renters.
Sources: Global Property Guide, KBD Reports, CSO Ireland
We have made this infographic to give you a quick and clear snapshot of the property market in Ireland. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Rents in Ireland’s university towns will increase due to growing student numbers and limited housing options
In Ireland, student enrollment is booming, especially with international students.
For the 2023/24 academic year, international student numbers hit a record 40,400, a 15% jump from the previous year. This surge is expected to keep climbing, with predictions that postgraduate students will soon outnumber undergraduates.
Meanwhile, university towns are feeling the squeeze with housing shortages becoming a real issue. In places like Carlow and Limerick, the demand for student accommodation is outpacing supply, pushing costs up. Limerick, for instance, saw a €24 monthly rent hike in 2024, making it one of the priciest spots for students.
These housing shortages are naturally driving up rental prices. Since 2023, student rents have increased by an average of €28 a month, or €252 annually. The Irish government is aware of the problem and has outlined plans in their Housing for All - Q4 2023 Progress Report to create more student beds and lessen the dependency on the private rental market.
With the growing student population and limited accommodation, rents in university towns are set to rise. This trend is particularly evident in areas with high student demand and limited housing options.
Sources: Switcher.ie, ApplyBoard, Government of Ireland
4) Dublin rents will keep rising because of a continued housing shortage
Rents in Dublin are climbing and show no signs of slowing down due to a persistent housing shortage.
In 2023, prime Dublin rents jumped by 13%, hitting €140 per square meter. If you're looking to rent a new place, expect to pay around €2,098 a month, which is a 6.5% increase from last year. This isn't just a blip; it's part of a larger trend fueled by a growing demand for rental properties.
Websites like daft.ie and myhome.ie are buzzing with activity, reflecting this surge in demand. A big reason for this is the rapid growth of the Irish population. In the year leading up to April 2023, net migration hit +77,600, the highest since 2007. This influx of people is expected to continue, putting even more pressure on the housing market.
Despite the need for up to 58,000 new homes each year until 2027, only 32,695 units were built in 2023. That's a 10% increase from the previous year, but it's still not enough to meet demand. This shortfall is a key factor in the ongoing housing shortage.
The media has been all over this housing crisis, highlighting the struggles renters face in finding affordable places to live. Surveys echo these challenges, painting a clear picture of a market that's stretched thin.
Sources: RTE, Euronews, SimilarWeb, CBRE
5) Rental yields for coastal properties in Ireland will rise as tourism and short-term rental demand grow
Coastal properties in Ireland are set to see higher rental yields thanks to booming tourism and short-term rental demand.
In 2023, Ireland welcomed more overseas visitors, with a 7% increase from the previous year, and these tourists spent a whopping €5.7 billion. This surge in interest is particularly focused on Ireland's stunning coastal areas, making them a hot spot for travelers.
Even though there was a slight dip in visitor numbers in November 2024, tourists are spending more per trip and per night, especially in coastal regions. This trend is fueled by the popularity of short-term rental platforms like Airbnb, which have seen a surge in listings and bookings in these charming seaside towns.
Government initiatives and media coverage are shining a spotlight on Ireland's coastal beauty, drawing even more visitors. This targeted marketing is boosting the demand for coastal accommodations, making them a smart investment choice.
Real estate reports highlight that coastal areas generally offer higher rental yields than inland regions. For instance, cities like Galway boast yields ranging from 5.5 to 12.4%, making them attractive to investors.
Sources: Global Property Guide, Tourism Ireland, Statista
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6) Dublin’s rental yields will fall as property prices rise faster than rents
Dublin's property prices have been soaring in recent years, especially in 2023 and 2024.
In Q3 2024, property prices in Dublin jumped by 6.2%, while the national average only saw a 3.1% increase. This rapid growth is making investors and property owners a bit uneasy. Everyone's watching these numbers closely, wondering what it means for their investments.
Meanwhile, rents in Dublin aren't keeping up with this property price surge. In Q2 2023, rents in Dublin City Centre went up by 8.8%. Sure, that's a decent rise, but it's still not enough to match the pace of property prices. This gap is a big reason why rental yields are starting to dip.
CBRE Ireland, a well-known real estate agency, pointed out that even with a 13% increase in prime Dublin rents in 2023, it's still not enough to keep up with the skyrocketing property prices. This mismatch is crucial because rental yields depend on the balance between rental income and property value.
As property values continue to climb faster than rents, rental yields are expected to decline. This is a key concern for anyone looking to invest in Dublin's property market. The numbers just don't add up in favor of high rental returns right now.
So, if you're thinking about buying property in Dublin, keep an eye on these trends. Understanding the dynamics between property prices and rent increases is essential for making informed decisions.
Sources: Statista, Global Property Guide, CBRE Ireland
7) Eco-friendly homes in Ireland will become more appealing due to government incentives
The Irish government is making eco-friendly homes more appealing by actively supporting sustainable building practices.
In 2023 and 2024, they rolled out substantial funding and tax incentives to promote green construction. For example, the Budget 2025 earmarked €10.5 billion for various projects, with €3 billion specifically for climate transition. Additionally, €469 million from the Carbon Tax was allocated to the Sustainable Energy Authority of Ireland for energy upgrades.
This financial backing makes it easier for homeowners to invest in eco-friendly tech like solar panels and heat pumps. The Solar PV Scheme, for instance, saw an €89 million increase from the previous year, making solar energy more accessible to Irish households. This means more people are now considering eco-friendly homes, knowing they can save money and reduce their carbon footprint.
Furthermore, the Climate Action Plan 2024 has set ambitious goals for retrofitting homes to achieve a B2 Building Energy Rating by 2030. This plan not only focuses on cutting emissions but also integrates sustainable building standards into national policies. Such measures ensure that future construction projects stick to eco-friendly practices, making sustainable homes even more attractive.
Sources: Construction Briefing, Housing Ireland, Gov.ie
8) Ireland’s property tax changes will affect investment strategies and property values
In Ireland, property tax reforms are reshaping investment strategies and property values.
One major change is the increase in the Vacant Homes Tax, which will jump from five to seven times the Local Property Tax (LPT) starting November 2024. This aims to push owners to use vacant properties, boosting the number of homes available for rent or purchase. If you're eyeing a property, this could mean more options and potentially better prices.
For landlords, the Finance (No. 2) Act 2023 brings a new perk: a 20% tax credit on residential rental income. This credit starts at €3,000 for 2024 and rises to €5,000 by 2027. But remember, it's capped at 20% of your rental income and doesn't apply if you're in a rental loss. This is a nod to landlords, aiming to keep the tax system fair while offering some relief.
Stamp duty rates are also on the rise. If you're buying a home over €1.5 million, expect a 6% stamp duty. For those buying 10 or more houses in a year, it's a hefty 15%. These hikes, effective from October 2024, are designed to slow down bulk purchases by big investors, keeping the market balanced for individual buyers.
These changes are part of a bigger trend where property tax revenue is becoming a larger slice of Ireland's total tax pie. This shift aligns with EU and OECD standards, highlighting the growing role of property taxes in the country's financial framework. Investors and property owners will need to navigate this evolving landscape carefully.
Sources: KPMG Ireland - Finance Bill 2024, Distribution of the Local Property Tax, Ireland's Residential Property Market Analysis 2024
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.
9) Rents in Ireland’s tech hubs will increase as the tech industry grows and attracts more talent
In 2025, Ireland's tech sector is booming, with a significant workforce contributing to the economy.
With over 260,000 people in digital roles, the demand for tech skills like machine learning and AI is high, and salaries can reach up to €120,000. This lucrative job market is attracting more professionals, which naturally increases the demand for housing in tech hubs.
Cities like Cork, Limerick, and Galway are seeing a surge in tech companies setting up shop, including big names like Intel and IBM. For example, Galway recently announced over 350 new tech jobs, reinforcing its status as a regional tech hub. This influx of companies and jobs means more people are moving to these areas, driving up the demand for housing.
The rapid growth of the tech sector has led to housing shortages in cities like Galway and Dublin, where rents were already high in 2024. Historical data shows a clear link between tech industry growth and rent increases, as seen in Dublin, where average rents for a two-bedroom apartment were notably high.
This trend is expected to continue as the tech industry expands. As more tech professionals flock to these cities, the demand for housing will keep rising, pushing rents even higher.
For those considering buying property in these areas, it's crucial to understand that the tech boom is a key driver of the housing market. The influx of talent and companies is reshaping the landscape, making these cities vibrant but also more expensive.
Sources: Nucamp Blog, Statista, Nucamp Blog
10) Demand for smaller, accessible homes in Ireland will grow as the population ages
In Ireland, the elderly population is growing rapidly.
By December 2023, 15.20% of the population was aged 65 and over, and this number is expected to nearly double by 2070. This shift is reshaping the housing market, with a clear demand for smaller, more accessible homes. As people live longer, their housing needs evolve, often requiring homes that are easier to manage and navigate.
Since 2013, Ireland has seen a 35% increase in its population aged 65 and over, outpacing the EU average. This trend highlights the need for housing that caters to older adults. The government is aware of this shift, as seen in the 2024 Ageing Report, which stresses the importance of creating living spaces that support the independence and health of older adults.
Local authorities are stepping up, actively promoting age-friendly housing through their Housing Delivery Action Plans. These plans aim to provide safe and secure environments for the elderly, ensuring that homes are not just accessible but also supportive of a healthy lifestyle.
In many communities, there's a push to develop homes that are not only smaller but also equipped with features like step-free access and wider doorways. These modifications make daily life easier for older residents, allowing them to maintain their independence longer.
As Ireland's population continues to age, the demand for these types of homes will only increase. This trend is not just a statistic; it's a call to action for developers and policymakers to prioritize age-friendly housing solutions.
Sources: 2024 Ageing Report Ireland - Country Fiche, Age Friendly Homes to Meet Ireland's Growing Ageing Population Need, Ireland - Proportion of Population Aged 65 and Over
11) Fewer buyers will seek traditional Irish cottages as modern amenities become more important
Homebuyers in Ireland are increasingly seeking modern amenities in their properties.
Since 2023, there's been a noticeable rise in demand for homes equipped with energy-efficient and smart technologies. This trend is expected to continue, with the residential real estate market projected to grow steadily over the next few years. Buyers are particularly interested in features that enhance convenience and sustainability.
Interestingly, 81% of Irish households are already using smart home technology, surpassing the European average. This includes everything from voice assistants to advanced multimedia systems. Such technologies are becoming a standard expectation, making traditional cottages, which often lack these features, less attractive to potential buyers.
Even though the overall number of home purchases dipped in early 2023, properties boasting high-speed internet and smart technology continue to draw interest. This shift highlights a growing preference for homes that offer modern conveniences, reflecting a change in buyer priorities.
Traditional cottages are seeing only a modest increase in asking prices compared to other properties, suggesting that buyers are more focused on modern amenities. The allure of charming, rustic homes is waning as people prioritize functionality and technological integration.
In the current market, the emphasis is clearly on homes that provide comfort and efficiency. As a result, the interest in traditional Irish cottages is expected to decline, with buyers opting for properties that align with their modern lifestyle needs.
Sources: Global Property Guide, RTE News, Statista
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12) Ireland’s luxury property market will slow down as buyers focus more on costs
The luxury property market in Ireland is experiencing a shift as buyers become more cost-conscious.
One major factor is the rising interest rates, which have made borrowing more expensive. This means that luxury homes are becoming less affordable for many potential buyers. With interest rates expected to stay high, this trend is likely to persist.
Another element adding to the financial strain is the increase in property taxes. For instance, the stamp duty on homes over €1.5 million has jumped to 6%. Initially, this tax change seemed minor, but it could slow down the market as buyers start feeling the pinch.
Economic uncertainty is also playing a role. Factors like Brexit and global trade issues have led to more cautious spending behavior. This uncertainty makes buyers hesitant to invest in high-end properties, which further slows down the luxury market.
In Dublin, for example, some buyers are opting for smaller, more manageable properties instead of sprawling estates. This shift indicates a growing preference for practicality over opulence.
As a result, the luxury market is seeing a slowdown, with buyers weighing their options more carefully. The days of quick, high-stakes purchases are giving way to a more measured approach.
Sources: CBRE, Irish Times, PwC
13) Property values in well-connected areas of Ireland will rise due to investment in public transport
In 2023 and 2024, Ireland invested heavily in public transport, aiming to boost property values in well-connected areas.
With a whopping €3.9 billion earmarked for the Department of Transport in 2025, Ireland is making a bold move. Over €1.6 billion of this budget is set aside for new services like BusConnects and Connecting Ireland, which promise to enhance bus services across towns and cities. Imagine hopping on a bus in a small town and reaching the city center in no time!
Historically, homes near quality transit systems have always been in demand. Research from the Journal of Transport and Land Use shows that properties close to public transport tend to have higher valuations. This isn't just an Irish phenomenon; cities like Tokyo and Singapore have seen property values soar thanks to their efficient public transport systems.
Buyers today are all about convenience. Surveys reveal that proximity to public transportation is a top priority for many. This makes such properties more attractive to a broader range of potential buyers or renters, driving up demand and, consequently, property values. Real estate agents are buzzing about the increased interest in properties near new or improved transport lines.
In Ireland, the buzz is real. As new transport lines roll out, interest in nearby properties is skyrocketing. The convenience and accessibility these properties offer are hard to resist, making them hot commodities in the real estate market.
Sources: Gov.ie, Primior, Public Policy
14) Flood risk assessments will heavily influence Irish property values as climate change worries grow
Flooding in Ireland has become a major concern in recent years, especially in 2023 and 2024.
Counties like Cork and Kerry have been hit hard, with severe floods highlighting the growing threat from climate change. This isn't just a passing issue; experts predict more frequent and intense rainfall in the future. As a result, insurance claims for flood damage have surged, leaving property owners with hefty financial losses. Insurance companies are now adjusting premiums based on flood risk, meaning higher costs for properties in vulnerable areas.
Government reports, like the National Risk Assessment, are crucial for understanding flood risks. They provide updated data that helps in property valuations. Local authorities also create maps showing flood-prone areas, which are vital for real estate agents and buyers. These resources are key to grasping the flood risk tied to a property.
New building regulations in flood-prone areas aim to make constructions more resilient. This includes using better materials and designs, which can actually boost property values by reducing potential damage. The media has been all over this, raising awareness about how climate change is affecting Irish weather and why flood risk assessments are so important.
Scientific studies back up the need for accurate flood risk assessments, predicting more intense rainfall. Public campaigns stress their importance in property deals. Real estate analyses show that properties in flood-prone areas often see price drops due to increased flood risk.
Case studies reveal that properties in high-risk zones, like those in Cork and Kerry, can lose significant value after severe flooding. Local governments are working on improving flood defenses through infrastructure projects and community efforts to build resilience.
There's a growing demand for flood risk assessments in property transactions, reflecting increased awareness among buyers and sellers. Professional services, such as those from chartered surveyors and environmental consultants, are in high demand. New tech, like advanced hydrological modeling and satellite imaging, has made flood risk mapping more accurate, providing essential data for property valuations.
Sources: Irish Meteorological Service, National Risk Assessment (NRA), Irish Insurance Institute
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.
15) More people in Ireland will seek energy-efficient homes as utility costs rise and environmental awareness grows
In Ireland, rising energy costs have made people more aware of their home energy use.
Homeowners are now keen on energy-efficient homes because they can significantly cut down on utility bills. The Irish government is backing this trend with various programs. For example, the Sustainable Energy Authority of Ireland (SEAI) noted a 78% increase in retrofitting activities in 2023, with nearly 48,000 homes upgraded. This shows a strong push towards energy efficiency, which is expected to keep boosting demand.
People are also more aware of climate change and want to live sustainably. Choosing an energy-efficient home is a step towards a healthier planet. Media coverage is playing a big role here, highlighting the perks of such homes and making them more attractive to buyers.
In the countryside, this trend is even more pronounced. Many rural homes are older and less energy-efficient, so upgrading them can lead to substantial savings. Plus, the peace and quiet of the countryside combined with modern energy solutions make these homes very appealing.
Local builders are catching on too. They're incorporating energy-efficient designs and materials into new builds, knowing that buyers are willing to pay a premium for homes that promise lower energy costs. This shift is not just about saving money; it's about investing in a sustainable future.
As utility costs continue to rise and environmental awareness grows, the demand for energy-efficient homes in Ireland is set to increase. The combination of government support, consumer awareness, and market adaptation is creating a perfect storm for this trend to flourish.
Sources: Climate Change Advisory Council, Gamma Labs, SEAI
In this video, we see how energy-efficient upgrades can significantly improve property ratings, as seen in a home moving from D2 to A1 BER rating.
16) Cork’s property market will become more appealing as the tech industry grows and job opportunities increase
Cork is quickly becoming a tech industry hotspot, making its real estate market increasingly appealing.
Back in 2023 and 2024, companies like Blink Parametric and Nostra expanded their operations in Cork, creating a wave of job opportunities. Blink Parametric, for example, planned to double its workforce by 2025, while Nostra opened a new office in Cork Docklands, adding 70 jobs with plans for even more growth.
This influx of tech companies has been fueled by government incentives, including a €1.5 billion investment in tech training and development. These efforts have made Cork an even more attractive location for tech firms, drawing in professionals eager to seize new opportunities.
Cork's commitment to infrastructure, like the €125 million regeneration project in the city's south docks, has further bolstered the tech industry's growth. This development has made Cork a more appealing place for both companies and individuals, enhancing its allure as a real estate market.
The buzz around Cork as a tech hub has been amplified by positive media coverage, which has played a significant role in boosting its attractiveness. As more tech professionals move to the area, the demand for housing in Cork continues to rise.
Sources: IDA Ireland, Irish Examiner, Nucamp Blog
17) Property demand in Limerick will rise unexpectedly as local infrastructure investment increases
Limerick is becoming a hotspot for property buyers thanks to major investments in local infrastructure.
Back in 2023 and 2024, the Irish government poured funds into projects like the N5 Ballaghaderreen to Scramoge and the N21/69 Limerick to Foynes. These aren't just roads; they're part of a bigger plan to make Limerick more connected and accessible. With these improvements, getting around the region will be a breeze, making it even more appealing for those looking to settle down.
The Limerick Development Plan 2022-2028 is another game-changer. It's all about turning Limerick into a Green City Region with ten-minute neighborhoods. Imagine living in a place where everything you need is just a short walk away—work, shops, parks. This setup not only boosts the quality of life but also makes Limerick a magnet for property seekers.
And let's talk numbers. Property prices in Limerick are on the rise, reflecting the buzz around the area. From December 2022 to January 2024, the average price of three-bedroom semis in the city jumped by 7%. This surge is a clear sign of the strong demand fueled by the city's ongoing transformation.
With all these developments, it's no wonder Limerick is catching the eye of potential buyers. The combination of improved infrastructure and a forward-thinking urban plan is creating a perfect storm for property demand. Investors and homebuyers alike are taking notice, eager to be part of Limerick's exciting future.
Sources: Budget 2025 Highlights, Limerick House Price Survey January 2024, Limerick Development Plan 2022-2028
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.