17 strong trends for 2025 in the Ireland property market

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 is happening in Ireland’s real estate market? Are prices soaring or stabilizing? Is Dublin still the go-to destination for international investors? How are Ireland’s government policies shaping the real estate landscape in 2025?

These are the questions we hear every day from professionals, buyers, and sellers across the Emerald Isle, from Cork to Galway and beyond. Maybe you’re curious about these trends too.

We know this because we stay closely connected with local experts and individuals like you, exploring the Irish real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.

Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.

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INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Ireland. If you’d like to learn more about us, you can check our presentation page.

1) Ireland’s property prices will rise moderately due to limited supply and high demand

In 2023, residential property prices in Ireland continued to rise, but not as quickly as before.

By July 2023, the property price index had gone up by 1.45% compared to the previous year, which was a big drop from the 13.17% increase seen in 2022. Even with this slowdown, the average house price hit €322,602 in the third quarter of 2023, marking a steady climb. This was a 1.1% bump from the previous quarter and a 3.7% rise from the same time last year.

In 2024, the housing demand stayed strong, with the rent index jumping 10.7% year-on-year to an average of €1,792 per month. The number of homes for sale dropped by 4% to 54,100 units by August 2023, showing how tight the market was. This limited supply, combined with high demand, kept pushing prices up.

Population growth added to the pressure, with net migration hitting +77,600 by April 2023. More people meant more homes were needed, but the supply wasn't catching up. The Economic and Social Research Institute (ESRI) noted that Ireland needed about 44,000 new homes each year to meet demand, with estimates ranging from 38,000 to 50,000 annually until 2030.

Experts are predicting a moderate price increase, with an average growth of 5% expected for 2025. The Irish Central Bank pointed out the need for around 20,000 extra homes each year to tackle the housing crisis, suggesting up to 52,000 homes might be needed annually until mid-century.

Despite government efforts like the "Housing for All" plan, which aimed to boost affordable housing, the supply remained tight. This limited supply, paired with high demand, was a key factor in rising house prices, as noted by real estate market analyses and expert opinions.

Sources: Global Property Guide, Breaking News, CBRE Ireland, Irish Times, Euronews

2) Northern Ireland will see increased property demand due to lower prices compared to the Republic of Ireland

Thinking about buying a property in Northern Ireland? It's a smart move because prices are much lower than in the Republic of Ireland.

In 2023, the average house price in Northern Ireland was £175,234, while in the Republic of Ireland, it was around €400,000 or about £335,000. This big price gap makes Northern Ireland a great choice for those looking for affordable homes.

Even by 2024, when the average house price in Northern Ireland rose to £219,110, it was still cheaper than in the Republic. For example, in Dublin, the average asking price was about €403,654 or £340,000. This ongoing price difference means you get more bang for your buck in Northern Ireland.

Real estate agencies like PropertyPal have noticed a lot more interest in Northern Ireland. In October 2024, there was a 16% increase in website traffic and a 14% rise in sales enquiries compared to the previous year. This shows that more people are catching on to the affordability advantage.

Sources: Twindig, Global Property Guide, Business Eye

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) University towns will see higher rental yields as student populations grow and accommodation demand rises

Student enrollment in Ireland has surged in 2023 and 2024, especially in university towns.

With more students arriving, the demand for housing is outstripping supply. Take Galway, for instance, where the housing shortage is pushing students to compete fiercely for available spots, driving rental prices up.

Students are not just looking for any accommodation; they're willing to pay extra for places near their universities. This trend is a key factor in boosting rental yields in these areas.

Real estate reports show that rental yields in university towns like Galway have grown significantly. Depending on the property size, yields range from 5.5 to 12.4 percent, making these areas attractive for property investors.

Insider knowledge suggests that this trend is likely to continue as student numbers keep rising, ensuring a steady demand for housing.

For those considering property investment, university towns offer a promising opportunity due to the consistent demand and potential for high rental returns.

Sources: Statista, Ulster University, Irish Universities Association

4) Properties in high rental yield areas will rise in price as investors look for better returns

In 2023 and 2024, the Irish property market saw a shift as investors flocked to areas with high rental yields.

Take Dublin and Cork, for instance, where average gross rental yields hit 7.33% and 8.36% respectively. These numbers are quite appealing, especially when compared to other regions. Investors are always on the hunt for better returns, and these yields offer just that.

One hotspot is Dublin 10, which in 2024, boasted a 9.4% gross annual yield for two-bedroom houses. This kind of return makes the area a magnet for investors. As they pour in, the demand for properties rises, naturally pushing up prices.

Historical data backs this up. The Global Property Guide notes that as rental yields climb, property prices tend to follow. Investors are willing to pay more for properties that promise higher returns, a trend highlighted by real estate agencies like Savills.

In 2024, investor activity in these high-yield areas was unmistakable. A notable example is a €42 million residential deal in Lucan, Dublin. Such investments show confidence in the market and suggest that property prices in these areas are set to rise.

As investors continue to chase high-yield opportunities, property prices in these areas are likely to increase. This trend is a clear indicator of the market's direction.

Sources: Global Property Guide, BNP Paribas Real Estate Ireland Report, Statista, Savills Q2 2024 Report

5) Foreign investors will increasingly enter Ireland’s residential market for stable returns in a growing economy

Foreign investors are increasingly eyeing the Irish residential market for its promising returns.

Why Ireland? Well, it's not just about the lush landscapes. Ireland's economy is booming, with a strong GDP growth rate and a 5.3% rise in corporation tax receipts in 2023. This economic vitality makes it a magnet for investors looking for stable opportunities.

Take Dublin and Cork, for instance. These cities are not just cultural hubs; they offer impressive rental yields. Dublin boasts an average gross rental yield of 7.33%, while Cork isn't far behind at 8.36%. Such figures are music to the ears of investors seeking reliable returns, even when the global economy wobbles.

Then there's Ireland's strategic position in the EU, which has become even more appealing post-Brexit. This location advantage, coupled with a growing population, means rental properties are in high demand. Urban areas, in particular, are buzzing with activity as multinational companies set up shop, further driving this demand.

For those considering a slice of the Irish property pie, it's worth noting that the market's resilience is a key attraction. Even when the world faces economic uncertainties, Ireland's real estate market stands firm, offering a sense of security to investors.

So, if you're pondering an investment, remember that Ireland's residential market is not just about bricks and mortar. It's about tapping into a thriving economy, strategic location, and a market that's ripe with potential.

Sources: PwC, Global Property Guide, CBRE

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6) Dublin rents will keep rising due to high demand and limited supply

Rents in Dublin are climbing steadily due to high demand and limited supply.

In 2023, the average rent in Dublin City Centre jumped by 8.8%, hitting €2,307. By early 2024, rents were 2.5% higher than the previous year, with the average open-market rent nationwide at €1,836 per month. This marks a 4.9% year-on-year increase, showing a clear upward trend.

The housing shortage is a big reason for these rising rents. As of May 1st, 2024, there were just over 2,000 homes available to rent in Dublin. This number hasn't changed much from the previous year and is well below the 2015-2019 average of almost 4,400 homes. The limited supply can't keep up with the growing demand.

Why is demand so high? Dublin's a magnet for people because of its education and job opportunities. The city's economic growth is drawing more workers, which means more people are looking for places to live.

Urbanization is another factor. As more people move to cities, the demand for rental properties in Dublin keeps climbing. This trend is particularly noticeable in areas with good transport links and amenities, making them hot spots for renters.

Sources: World Property Journal, Eldron, Global Property Guide

7) Major cities will see higher demand for rentals as more international workers arrive

In 2023 and 2024, Ireland saw a notable rise in work permits for international workers.

In the first half of 2024, there was a 20.5% increase in work permits compared to the same period in 2023, with many permits going to people from India and Brazil. This surge shows a growing need for labor in various sectors, which naturally means a higher demand for rental housing as these workers settle in major cities.

Multinational companies like Schneider Electric, Abbott, and Johnson & Johnson have expanded in Ireland, especially in engineering, medtech, and pharmaceuticals. This expansion has attracted a significant influx of foreign talent. These workers often choose urban living for its job opportunities and amenities, which boosts the demand for rentals in cities like Dublin, Cork, and Galway.

The Central Statistics Office noted a net migration of 79,300 people to Ireland by April 2024, with many settling in urban areas. This immigration wave adds to the rising demand for rentals, as these newcomers need places to live.

Real estate reports highlight increased rental demand in urban areas, driven by strong economic and demographic fundamentals. This supports the need for more rental properties to accommodate the growing population.

Sources: Schengen News, AA Euro, Central Statistics Office

8) Galway's property price growth will slow as supply starts meeting demand

Galway's property market is seeing a shift as supply starts to meet demand.

In 2023, property prices in Galway barely budged, hinting that the days of rapid price hikes might be behind us. This change is largely due to a surge in housing projects. The Galway City Council is busy with developments like the Merlin Woods project, which will add over 100 homes, and new social housing in Ballyburke, Knocknacarra.

Looking ahead, the Council plans to deliver up to 260 new units by 2026. This push in construction and planning permissions shows a strong effort to tackle the housing shortage, aiming for a more balanced market.

Real estate agencies are echoing this sentiment, predicting a slower pace of price growth in the coming years. While prices might still climb, the increase is expected to be more gradual, signaling a market stabilization.

Potential homebuyers are also noticing this shift. Surveys reveal that many perceive better housing availability, suggesting a move towards a more balanced supply and demand situation.

With these developments, Galway's property market is poised for a change, offering a more stable environment for buyers. Government initiatives and construction projects are key drivers in this transformation.

Sources: Connacht Tribune, Galway City Council, Real Estate Alliance

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 rental yields will rise as demand stays strong despite increasing prices

Rental yields in Dublin are on the rise as demand for rental properties remains strong despite increasing prices.

In 2023, Dublin saw a 10% jump in rental prices, and this trend is expected to continue into 2024. Landlords are keen to maximize their returns in this thriving market. The city's growing population and urbanization are major drivers of this demand. From 2016 to 2021, Dublin's population grew by 4.3%, with many newcomers looking for rental homes.

People are flocking to urban areas for job opportunities and amenities, which keeps the rental demand high. Dublin's rental market is also characterized by low vacancy rates. In 2023, the vacancy rate was around 1.5%, making it a highly competitive market where landlords can charge more.

This low vacancy rate is likely to persist as the city's population continues to grow and urbanize. With more people moving to Dublin, the demand for rental properties is expected to remain strong. This means landlords can expect higher rental yields in the coming years.

For those considering buying property in Dublin, it's important to understand these dynamics. The city's rental market is not just about rising prices; it's about a robust demand that shows no signs of slowing down. This makes Dublin an attractive option for property investors looking for solid returns.

Sources: MyHome.ie, Central Statistics Office Ireland, Daft.ie

10) Urban property prices may dip slightly as people shift to suburban and rural areas

People are increasingly choosing to live in suburban and rural areas instead of bustling urban centers.

This shift is largely due to the rise in remote work, which lets folks live further from their jobs while still staying connected. With more people working from home, there's a growing desire for spacious living environments that these areas offer.

In 2023 and 2024, surveys showed that people prefer homes with room to breathe and the ability to work remotely, which are easier to find outside city limits. The Irish government's "Our Living Islands" policy sweetens the deal by offering incentives to move to rural islands, making these areas even more appealing.

As urban areas see fewer people moving in, the demand for city properties is dropping. In the first seven months of 2023, there was an 8.2% decrease in urban home purchases compared to the previous year. This dip in demand has also led to a 2.5% fall in transaction values during the same period.

With fewer buyers, urban property prices are starting to level off or even dip a bit, according to real estate market reports. This trend is making suburban and rural living not just a dream but a practical choice for many.

So, if you're thinking about buying a property, consider the charm and space of the countryside, where property prices are more stable and the lifestyle is often more relaxed.

Sources: Global Property Guide, CSO Ireland, Property Guides, Land Network, eSales International

11) New government incentives for first-time buyers will increase demand in the residential market

New government incentives for first-time buyers are set to boost demand in the residential market.

One major change is the extension of the Help to Buy scheme until 2029, offering a tax rebate of up to €30,000 or 10% of the property price. This move is expected to increase demand for newly built homes, making it easier for first-time buyers to step onto the property ladder.

In 2023, there was a noticeable increase in mortgage loans granted to first-time buyers, with 25,937 loans compared to about 22,286 in 2022. This trend highlights a growing interest in homeownership, likely fueled by these new incentives. More people are now able to consider buying their first home, thanks to these supportive measures.

The media has been buzzing about these government incentives, especially the Help to Buy and First Home schemes. This coverage has raised awareness and interest among potential buyers, making them more informed and eager to explore their options. Real estate agents are seeing more inquiries from first-time buyers, a direct result of these efforts.

With the number of mortgage approvals for first-time buyers rising since 2020, it's clear that more individuals are seeking to purchase their first homes. This trend is expected to continue as the government makes homeownership more accessible and attractive.

Sources: HOMS Assist, Statista, Switcher.ie

12) New property tax rules will affect investor choices, especially in high-demand areas

Changes in property tax regulations can really shake up investor decisions, especially in hot markets.

Take the Finance Act 2024, for example. It bumped up the stamp duty rates, meaning investors now face higher costs when buying properties. This is a big deal in places where property prices are already sky-high. The increase from 10% to 15% for bulk buys is a clear move to discourage big players from snapping up multiple homes in these sought-after areas.

Investors might need to rethink their game plans because these extra costs can eat into their profits. And if you're eyeing luxury properties over €1.5 million, the higher stamp duty could make you think twice. These posh pads are often in high-demand spots, and the tax hike might just be the nudge needed to look elsewhere.

Even though the historical data isn't specific to Ireland, it shows a pattern: tax hikes often slow down investment activity. Investors are pretty sensitive to these changes since they hit the bottom line directly. Real estate experts and agencies are always crunching numbers to see how these tax tweaks shift market trends, offering a peek into where investor interest might head next.

Government reports and media stories also play a role, shedding light on how these tax changes ripple through the housing market. They highlight investor reactions and can give you a sense of the bigger picture. So, if you're thinking about diving into the property market, it's worth keeping an eye on these developments.

Sources: KPMG Ireland - Finance Act 2024, Revenue.ie - Property Tax Statistics, PwC - Emerging Trends in Real Estate

13) Newer, eco-friendly homes will become more appealing due to stricter energy efficiency regulations

Stricter energy efficiency regulations in Ireland are making eco-friendly homes more appealing.

These new rules, part of the Energy Efficiency Obligation Scheme, are pushing for higher energy standards in residential areas. This means that newer homes are being built to meet these ambitious targets, making them more attractive to potential buyers. The focus is on creating homes that are not just modern but also energy-efficient, which is becoming a key selling point.

To support this shift, the Irish government has introduced a €500 million Home Energy Loan Scheme. This initiative offers affordable loans for homeowners looking to make energy-efficient upgrades, like installing heat pumps or solar water heating systems. With interest rates lower than the market average, it's now financially easier for people to invest in these eco-friendly options.

There's also a noticeable change in what buyers want, especially among younger people and families. They are increasingly drawn to homes with features like solar panels, which promise lower utility bills and a smaller carbon footprint. This shift in consumer preference is not just a trend; it's influencing the real estate market significantly.

Eco-friendly homes are seeing a boost in resale value because they tend to sell faster and at higher prices. The demand for sustainable living is real, and it's driving up the market for these types of properties. Buyers are willing to pay a premium for homes that align with their values and offer long-term savings.

Sources: SEAI, PV Magazine, Going Solar

14) Remote work trends will boost demand for homes with dedicated office spaces

Remote work is booming in Ireland, with more people than ever working from home.

In 2023, a survey revealed that 59% of people were working in a hybrid model, while 38% were fully remote. This shift means folks are spending more time at home, making a dedicated office space a must-have.

By early 2024, 15.4% of job postings in Ireland included remote or hybrid options, showing that working from home is becoming the norm. As people adapt, they see the value in having a separate space to focus, making homes with office spaces more appealing.

Having a dedicated workspace at home can boost well-being, job satisfaction, and productivity. This is why many are on the hunt for homes that fit their work needs. Companies like HuntOffice.ie have noticed a spike in sales of home office furniture, indicating that people are serious about setting up comfy work environments.

In Ireland, the trend towards remote work is reshaping the housing market. People are prioritizing homes that offer the flexibility to create a productive workspace, reflecting a shift in lifestyle and work habits.

Sources: Western Development, HuntOffice.ie, Silicon Republic

Remote work is a major trend in Italy, so much so that it’s been thoroughly documented by leading statistics platform Statista

15) Ireland’s aging population will boost demand for smaller, more accessible homes

In Ireland, the number of people aged 65 and over is expected to rise to 20% by 2030.

As folks get older, they often look for smaller, easier-to-manage homes. Big houses can be a hassle to maintain, and downsizing helps cut costs and simplify life. Plus, smaller homes are usually easier to get around in, which is a big deal if mobility becomes an issue.

There's a growing need for homes that are both accessible and age-friendly. Many seniors want features like single-story layouts and wider doorways to make life easier and safer. In Ireland, more age-friendly housing developments are popping up, like those managed by Clann, which cater to people aged 55 and over.

These developments are designed with security and inclusivity in mind, offering a community feel while meeting the specific needs of older adults. It's not just about the house itself but also about creating a supportive environment.

With Ireland's aging population, the housing market is shifting. Builders and developers are increasingly focusing on creating spaces that accommodate the needs of older residents. This trend is reshaping the landscape of housing in the country.

So, if you're considering buying property in Ireland, keep an eye on these developments. They not only offer practical living solutions but also enhance the quality of life for seniors by providing a sense of community and belonging.

Sources: 2024 Ageing Report Ireland - Country Fiche, Retirement Villages in Ireland, Age-friendly housing: Meeting the needs of Ireland's ageing population

16) Demand for properties near outdoor activities will grow as people seek better work-life balance

The trend of seeking a better work-life balance has gained momentum, especially after the Covid-19 pandemic.

Many people are now prioritizing living in areas that offer outdoor activities to enhance their work-life balance. With remote work becoming more common, individuals are moving away from bustling cities like Dublin to quieter, scenic places such as Cork and Galway. This shift is not just about escaping the city; it's about finding a lifestyle that includes more time in nature.

Remote work has opened up new possibilities, allowing people to choose homes in areas that were previously too far from their workplaces. According to the Western Development Commission, 14% of people have relocated due to remote work opportunities. This trend is particularly noticeable in rural counties where the pace of life is slower, and the air is fresher.

People are increasingly drawn to properties near parks and trails. For instance, Castlebar has been highlighted as a top spot for work-life balance, thanks to its abundance of green spaces and local amenities. This preference reflects a broader trend where outdoor sports and activities are becoming more popular, as they offer significant mental and physical health benefits.

Living near nature isn't just a luxury; it's becoming a necessity for many. The desire to be close to outdoor activities is reshaping the real estate market, with more buyers looking for homes that provide easy access to nature. This shift is evident in the growing demand for properties in areas that offer a blend of tranquility and adventure.

As more people embrace remote work, the appeal of rural living continues to rise. The ability to work from anywhere has made it possible for individuals to choose locations that offer a better quality of life, with ample opportunities for outdoor recreation. This trend is reshaping how people think about where they want to live and work.

Sources: Western Development Commission, HR Headquarters, Silicon Republic

17) Property values will rise in areas with improved public transport links

Improved public transport links can significantly boost property values in connected areas.

Take Dublin, for instance, where homes near DART stations have seen impressive value hikes. If you're eyeing a place near the Sandymount DART station, expect to pay around €788,000. Meanwhile, properties close to Dalkey and Sandycove & Glasthule stations aren't far behind, averaging €716,000 and €705,000 respectively.

Then there's the Luas line, another game-changer for property prices. Homes near the Cowper stop on the green line have asking prices soaring to €679,000. This isn't just a fluke; real estate platforms like Daft.ie confirm that properties near DART and Luas stations are hot commodities, reflecting a strong demand for homes in these well-connected spots.

Why the rush to live near public transport? It's all about convenience, saving money, and being kinder to the planet. More people are ditching their cars for trains and trams, which is driving up the demand for homes near these transport links. Plus, the government is pouring €1.6 billion into public transport infrastructure as part of Budget 2025, which is set to make these areas even more desirable.

Sources: Daft.ie Blog, Gov.ie, Dublin Inquirer

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.