Authored by the expert who managed and guided the team behind the Ireland Property Pack
Everything you need to know before buying real estate is included in our Ireland Property Pack
What do the latest numbers reveal about Ireland’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Ireland, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) New residential construction projects in Ireland are expected to grow by 25% by 2025, addressing housing demand
In recent years, Ireland has led Europe in new housing completions.
Back in 2023 and 2024, Ireland maintained the strongest rate of new housing completions among 19 European countries. This trend is expected to continue, with housing completions per 1,000 people forecasted to be significantly above average in 2025. The Central Bank of Ireland estimated that around 52,000 new homes would be needed each year to meet the housing demand, driven by factors like pent-up demand and population growth.
Although there wasn't a specific mention of a 25% growth in new residential construction projects by 2025, the overall trend pointed towards a significant increase in housing completions and construction activity. Despite challenges such as material costs, workforce shortages, and infrastructure bottlenecks, the construction sector in Ireland is expected to grow.
The total output is projected to increase by 1.4% in 2024 and 6% in 2025, indicating a robust growth trajectory for the sector. This growth is crucial as it addresses some of the housing demand, making Ireland an attractive option for potential property buyers.
Sources: EY Euroconstruct, Prop News Time, Central Bank of Ireland
2) By 2025, rural Ireland's residential vacancy rate is expected to drop below 5% as more people leave urban areas
In 2025, the vacancy rate for residential properties in rural Ireland is expected to fall below 5% as more people move away from urban centers.
Rural Ireland is becoming increasingly attractive due to robust economic conditions and low unemployment. These factors have been shaping the Irish property market, especially in 2023 and 2024, driving housing demand in cities like Dublin, where the housing shortage is most severe.
Remote working and the rise of staycations are making rural properties more appealing. People are drawn to the quieter lifestyle and often more affordable housing options found in the countryside, compared to the hustle and bustle of city life. This shift is gradually impacting vacancy rates in rural areas.
Previously, the average vacancy rate in Ireland was around 4.8%, with significant regional differences. In counties like Cork and Galway, reutilizing long-term vacant properties has helped ease the supply shortage. While this hasn't completely solved the urban housing crunch, it has contributed to lower vacancy rates in rural regions.
As more people embrace rural living, the demand for these properties is expected to grow. This trend is supported by the increasing popularity of remote work, which allows people to live further from their workplaces without sacrificing job opportunities.
With these changes, rural Ireland is poised to see a significant transformation in its housing market, offering new opportunities for potential buyers looking for a different pace of life.
Sources: Irish Times, Sell My Home Ireland, Economy Finance
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) By 2025, a three-bedroom house in Limerick is expected to cost about €350,000
In 2025, the average cost of a three-bedroom house in Limerick is expected to be around €350,000.
Over the past few years, Limerick has seen a steady climb in house prices. In 2023 and 2024, prices consistently rose, with a notable 3.3% increase in the last quarter of 2024, pushing the average price to €315,000. This trend reflects a broader pattern in the Irish property market, where a strong economy and low unemployment have kept demand high.
Urban areas like Limerick are particularly affected by this demand, driven by a persistent housing shortage. While the exact figure of €350,000 wasn't explicitly forecasted, the general sentiment was for continued growth, albeit at a slower pace. This aligns with the broader market trends observed across Ireland.
Predictions from the Bank of Ireland suggested a further 4% increase in house prices in 2025. Although this wasn't specific to Limerick or three-bedroom houses, it supports the idea of rising property values, making the €350,000 figure seem quite plausible.
These insights are backed by various reports and forecasts, which highlight the ongoing upward trajectory of the property market. The combination of economic factors and housing demand continues to drive prices up, especially in cities like Limerick.
Sources: Limerick Post, Sell My Home Ireland, MPA Mag
4) By 2025, 50% of homes in Ireland are expected to have security systems as safety becomes a priority
The home security market in Ireland is booming, with more people seeking advanced security solutions and embracing the latest technology.
From 2024 to 2029, this market is set to grow by 10.50%, reaching a substantial US$24.6 million by 2029. This growth is fueled by the demand for systems that are easy to control and monitor remotely, offering homeowners a sense of security and peace of mind.
Security cameras, video doorbells, and smart locks are becoming household staples, reflecting a shift towards comprehensive security solutions that are both effective and user-friendly.
While data center security might seem unrelated, it highlights a broader trend: society's increasing focus on safety and security across various sectors.
In Ireland, the percentage of residential properties with security systems is projected to reach 50% by 2025, as safety becomes a priority for many homeowners.
Sources: Statista, SafeHome.org, Mordor Intelligence
5) By 2025, Galway's average rent is expected to hit €1,800 monthly, showing its rising popularity
In 2025, the average rental price in Galway is expected to reach €1,800 per month, highlighting the city's growing popularity.
Galway has been catching up with major Irish cities, with rental prices ranging from €1,279 to €2,430 in 2023 and 2024, depending on property size. This trend shows how Galway is becoming a sought-after place to live. The Residential Tenancies Board noted that rents outside Dublin, including Galway, rose by 12.2% year-on-year in early 2024, indicating a broader national trend.
Galway's charm lies in its mix of job opportunities, cultural life, and quality of living, making it a magnet for new residents. This influx is pushing up demand for housing, which naturally leads to higher rental prices. The city's appeal is not just about work; it's about a lifestyle that many find irresistible.
As more people choose Galway, the housing market feels the pressure. The city's unique blend of attractions is a key factor in the rising rental costs. With more people wanting to live there, landlords can command higher rents, reflecting the city's desirability.
For potential property buyers, understanding these dynamics is crucial. The expected rental price increase to €1,800 per month in 2025 is a clear indicator of Galway's growing allure. This trend is not just a local phenomenon but part of a larger pattern seen across Ireland.
Sources: Statista, Galway Advertiser, Residential Tenancies Board
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6) Waterford's rental yield is projected to reach 5.5% in 2025, attracting property investors
In 2025, Waterford's average rental yield is projected to hit 5.5%, making it a hotspot for property investors.
Over the past few years, Waterford has consistently delivered strong rental returns. In 2023 and 2024, rental yields in the city ranged from 4.9% to 11.2%, depending on the property size. This shows a solid potential for generating rental income, which is a key attraction for investors.
Across Ireland, rental yields have been on the rise, especially in cities like Galway and Limerick. For example, in the second quarter of 2024, Galway boasted the highest gross annual yield, with figures between 5.5% and 12.4%. This upward trend in rental yields suggests a promising landscape for property investors, with Waterford being no exception.
One of the driving forces behind these increasing yields is the limited supply of residential properties in Ireland. With fewer homes available for sale, rents have been climbing as demand outstrips supply. This imbalance is likely to continue pushing rental yields higher, benefiting areas like Waterford.
Given these dynamics, it's reasonable to anticipate that Waterford will maintain its strong rental yield in 2025. The city's performance in recent years, coupled with the broader market trends, makes it an appealing choice for those looking to invest in property.
Sources: Statista, Global Property Guide
7) By 2025, 95% of Irish homes are expected to have broadband access as connectivity improves
By 2025, 95% of Irish homes will have broadband thanks to improved connectivity.
This leap forward is largely due to the National Broadband Plan (NBP), which is focused on bringing high-speed internet to every corner of Ireland. Rural areas are a key focus, as commercial providers have often overlooked them. The NBP is changing that, ensuring that even the most remote homes and businesses can get online.
Back in 2023, nearly 330,000 premises in Ireland had the option to access or pre-order broadband. This was a big step forward for the NBP, showing that the plan was making real progress. By 2024, over 100,000 premises were already connected, and many residents and businesses were enjoying faster internet speeds.
National Broadband Ireland (NBI) has been a driving force behind this progress. They announced that by the end of 2025, high-speed fibre broadband will reach over 420,000 premises. This is more than they initially planned, showing that the project is exceeding expectations.
Among these, over 310,000 homes, farms, and businesses have been equipped with NBI fibre. The take-up rate is impressive, with 34% of these premises already using the service. This rate is not only ahead of what was projected but also compares favorably on an international scale.
Sources: NBI News, Silicon Republic
8) By 2025, 90% of homes in Ireland are expected to have high-speed internet as infrastructure improves
By 2025, 90% of homes in Ireland will have high-speed internet thanks to improved infrastructure.
The National Broadband Plan is a key player in this transformation, focusing on bringing high-speed fibre broadband to rural areas. By the end of 2025, over 420,000 homes will be connected, with 86% of these projects either completed or underway by 2024.
This plan aims to connect more than 600,000 homes, including new constructions, over its duration. By 2025, 90% of homes in Ireland will enjoy high-speed broadband, ensuring that every county benefits from this digital upgrade.
To make this happen, the project has received a €400 million boost in Budget 2025. This funding is crucial for rolling out the high-speed network, making sure the digital benefits reach every corner of the country.
Sources: NBI, Gov.ie, Gov.ie PDF
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) Cork's rental yields are expected to reach about 6% by 2025, making it a top city for rental income
Cork's rental market is booming, with rental yields hitting 9.08% by late 2024.
This figure is impressive compared to Dublin's 7.13% yield and the national average of 8.10%. The main driver behind these high yields is a persistent housing shortage in Ireland, especially in cities like Cork and Dublin.
With fewer homes available, rental prices have surged, making Cork a hotspot for investors seeking solid returns. Even though there's no direct source confirming a 6% yield for Cork by 2025, it's reasonable to expect a slight dip due to market shifts.
Factors like changes in property prices or rental income could influence this, but even at 6%, Cork remains attractive for investors. This is especially true if the yield stays stable over time, offering a reliable income stream.
Investors are drawn to Cork not just for its current high yields but also for its potential to maintain a strong rental market in the coming years. The city's appeal is further enhanced by its vibrant economy and growing population.
As the housing shortage continues, Cork's rental market is likely to remain competitive, ensuring that it stays one of the most appealing cities for rental income.
Sources: InRento Expands to Ireland: What's Behind This Market's Appeal?, Rental Yield - Buying an Investment Property?, Rental yield for residential property Ireland (excl. Dublin) 2024, by city
10) By 2025, 40% of homes in Ireland are expected to have smart security systems
By 2025, 40% of homes in Ireland are expected to have smart security systems.
In recent years, the security market in Ireland has seen a boom, largely due to the integration of advanced technologies like AI and machine learning. These innovations have transformed security systems, offering features like real-time video analytics that can spot suspicious activities, making homes safer.
There's also a growing demand for cybersecurity solutions, spurred by Ireland's focus on data protection and privacy regulations. The GDPR has pushed organizations to adopt strong security measures, which in turn has increased interest in smart home security systems.
Globally, there's a trend towards adopting smart home technology, and Ireland is no exception. Smart security features are becoming increasingly popular, aligning with this worldwide shift.
While the exact percentage of homes with these systems by 2025 isn't detailed, the trend is clear. More homeowners are embracing smart security as part of a broader move towards smarter living.
Sources: Statista Market Forecast on Security in Ireland, Stealth Monitoring on Apartment Security
11) Co-living developments in Dublin are expected to double by 2025 to meet affordable housing demand
The number of co-living developments in Dublin is expected to double by 2025.
In recent years, especially around 2023 and 2024, young professionals have been on the hunt for affordable and flexible housing options. Dublin, with its high cost of living, has seen a surge in this trend. Co-living spaces have become a popular choice because they offer a way to live in the city without the hefty price tag.
One major reason for this shift is the rising property prices. Traditional housing has become increasingly unaffordable, pushing people to seek alternatives. Co-living developments provide a budget-friendly solution, making city life more accessible.
There's also been a noticeable demographic change. Millennials, who make up the largest generation in Ireland, are reaching an age where they want to settle down. However, their preferences lean towards urban living with modern amenities and sustainable design, which co-living spaces often offer.
These spaces not only cater to financial needs but also align with the lifestyle choices of many young people today. The demand for co-living is driven by a desire for community and convenience, elements that are increasingly important in urban settings.
As Dublin continues to grow, the need for innovative housing solutions like co-living is becoming more apparent. This trend is not just about affordability but also about creating spaces that reflect the evolving needs of city dwellers.
Sources: Irish Property Market Forecast for 2025, Property Market Predictions for Ireland in 2025
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12) By 2025, Galway is expected to face a housing shortage of 10,000 units, pushing property prices up
By 2025, Galway is expected to face a housing supply shortage of about 10,000 units, which will likely drive up property prices.
This shortage has been building over the years because the demand for housing has consistently outpaced supply. Back in 2023, Dr. Sally Anne Corcoran from COPE Galway highlighted that increasing supply was crucial since demand was already exceeding availability.
Galway's lively job market and cultural attractions have drawn many people, further boosting the demand for homes. However, the housing supply hasn't kept pace. According to DNG Maxwell Heaslip & Leonard, a leading estate agent, the housing stock was lagging despite strong demand, leading to firm property prices and fierce competition among buyers.
Adding to the pressure, Ireland's economic and population growth has played a role. The European Commission's Economic Brief noted that the country's expansion phase has fueled housing demand, especially in urban areas like Galway. Even though there were predictions of a potential decline in house prices, the immediate issue of supply shortage remained unaddressed.
The Banking & Payments Federation Ireland emphasized that the supply shortage is a pressing issue that needs attention. This situation is compounded by the broader economic context, which continues to drive demand.
As a result, Galway's property market is expected to remain competitive, with buyers facing challenges due to the limited availability of homes. This dynamic is likely to keep property prices firm, making it a challenging environment for potential buyers.
Sources: Galway Pulse, Galway Advertiser, European Commission
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.