Irish Property Market Forecast For 2025
Irish Property Market Forecast 2025: What to Expect and How to Prepare
The Irish property market is once again in the spotlight in 2025. Prices are climbing, demand is surging, and supply remains critically tight. While falling interest rates offer some relief to buyers, affordability remains a major challenge. For sellers and investors, this continues to be a seller’s market—but it’s not without risks.
So what does the year ahead look like? Whether you’re planning to buy, sell, or invest, here’s a comprehensive breakdown of Ireland’s housing market in 2025, along with expert insights and key trends shaping the landscape.
House Prices Rise Further in 2025
Irish property prices continue their upward trend into 2025. According to the Central Statistics Office, prices are around 8% higher than this time last year. Median sale prices nationally have reached €360,000, while asking prices are now hovering around €375,000 nationwide and €450,000 in Dublin.
Some reports even suggest annual inflation hitting double digits—up to 12%, the highest rate in eight years. Compared to pre-pandemic levels, prices are now about 35% higher.
What’s driving this growth?
- Strong demand from first-time buyers and upgraders
- Chronic under-supply of homes for sale and rent
- Economic resilience, with rising wages and low unemployment
- Buyer confidence, especially among young households
But there’s a flipside: affordability is stretched, with house prices now around 8 times the average income, pushing buyers to stretch their budgets.
Mortgage Rates: Relief in Sight
The interest rate landscape has shifted in buyers’ favour. After two years of sharp rate hikes, the European Central Bank began cutting rates in 2024, with its main rate down to 2.65% by early 2025 (from 4.5% in 2023). Irish mortgage rates have responded, falling slightly to around 3.8% on average for new loans.
This is good news for both new buyers and existing tracker mortgage holders—each 0.25% ECB rate cut equates to savings of about €13/month per €100,000 borrowed.
While rates remain higher than the record lows of 2020–2021, the downward trend could make home ownership slightly more accessible as 2025 progresses. However, affordability remains a challenge as price growth still outpaces wage growth, and mortgage repayments cover less property for the same monthly budget.
Tight Supply Continues to Define the Market
The housing shortage remains the defining feature of Ireland’s property market in 2025. On MyHome.ie, listings fell to just 10,800 in March, the lowest level on record. Daft.ie reported fewer than 9,300 second-hand homes for sale at the start of March—17% less than a year earlier.
Key supply issues include:
- Slower new build completions (around 30,300 homes in 2024, down from 33,000 in 2023)
- Construction not keeping pace with demand (estimated at 45,000–50,000 homes needed annually)
- Delays in planning and zoning approvals
- Land hoarding and underuse of vacant properties
The government’s Housing for All strategy aims to build over 300,000 new homes by 2030, with annual targets rising to 50,000+ by the late 2020s. However, these efforts will take time to affect short-term market dynamics.
For now, limited supply is keeping competition fierce and pushing prices up.
Regional Insights: Dublin, Cork, Galway, and Limerick
Dublin
Dublin remains Ireland’s most expensive market, with prices rising 12.2% year-on-year—the sharpest increase in years. The average asking price in Dublin is now around €450,000, though it can exceed that in prime areas.
Supply is especially scarce: as of March 1st, fewer than 3,500 second-hand properties were for sale across the entire Dublin region. This tight supply, combined with high-income tech and finance jobs, continues to fuel bidding wars.
Cork
Cork’s housing market is also heating up, with prices growing around 9–10% annually. Median home prices remain lower than in Dublin, but the gap is narrowing. Cork benefits from a strong pharmaceutical and tech sector, attracting both locals and those relocating from more expensive regions.
Galway
Galway is one of the strongest performing cities in early 2025, with price growth of about 13%. The city’s appeal lies in its medical tech sector, cultural attractions, and tight housing stock. Properties, especially family homes, are selling fast—often well above asking.
Limerick
Limerick has emerged as another hotspot, with 13.8% house price growth and a staggering 19% rent increase in 2024. Demand is being driven by revitalisation projects, tech expansion, and relatively affordable pricing compared to other cities.
Government Schemes and Housing Policy
Housing affordability and supply remain top political priorities. The government has extended and expanded several initiatives in 2025:
Help-to-Buy
Extended through 2029, this scheme offers first-time buyers a tax rebate of up to €30,000 when purchasing a new-build. It’s already helped over 50,000 buyers, and its continuation supports younger households entering the market.
First Home Scheme
A shared equity scheme that helps bridge the gap between the mortgage and property price. It’s aimed at new-build buyers who need help closing the affordability gap.
Housing for All
Ireland’s long-term plan to build more homes includes:
- Increased annual housing targets (to 50,000+ units by 2030)
- Funding for social and affordable housing
- Grants to renovate vacant homes
- A new Residential Zoned Land Tax to discourage land hoarding
While these policies offer long-term promise, the short-term impact on supply remains limited in 2025.
Rental Market Still in Crisis
While the sales market is booming, the rental market remains under intense strain:
- Rents rose by 5.7% nationwide in 2024 (following a 6.8% increase in 2023)
- Average monthly rent is now €1,956, up 43% since 2020
- Fewer than 2,300 rental listings were available nationwide as of February 2025
Dublin remains the most expensive rental market, but rent inflation is now higher outside the capital. Limerick, for example, saw 19% growth in rents in just one year.
Landlord exits, rising costs, and strict regulations have all contributed to low rental supply. While Rent Pressure Zones protect existing tenants, new tenants face high market rates.
The government is trying to address this with:
- Expanded cost-rental housing
- Tax relief proposals for small landlords
- Increased social housing and long-term leases
But the rental market remains highly competitive and challenging for renters.
Sustainability and Energy Efficiency Gaining Ground
As energy prices fluctuate and climate goals become more urgent, energy-efficient homes are increasingly in demand.
- All new homes now meet nZEB (near Zero Energy Building) standards
- Homes with a high BER (Building Energy Rating) sell faster and for more money
- Green mortgages offer lower interest rates for energy-efficient homes
The government is investing heavily in retrofitting existing housing stock, with grants and low-interest loans available to homeowners. By 2030, Ireland aims to upgrade 500,000 homes to a B2 BER or better.
Buyers in 2025 are starting to prioritise properties that cost less to heat and are better for the environment. Expect this trend to accelerate in the coming years.
Economic Backdrop: Strong but Watchful
Ireland’s economy remains robust in early 2025:
- Employment is at record highs
- Wage growth has been steady
- Inflation has eased to around 2%
These factors support housing demand. However, risks remain:
- Global uncertainty, including a potential EU–US trade war
- High dependence on tech and pharma sectors
- Ongoing geopolitical tensions (e.g. Ukraine)
Ireland’s open economy means the housing market is vulnerable to global shocks—especially in high-income sectors. For now, analysts expect moderate but sustained price growth in 2025, barring a major downturn.
Forecast and Final Takeaways
Most property analysts forecast 5–8% national house price growth for 2025. Continued demand, easing interest rates, and slow supply recovery support this trajectory.
Here’s what that means for different market participants:
For Buyers
2025 remains a challenging but not impossible year to buy. Get your mortgage approval in place early, use available government schemes, and be ready to act quickly—homes are selling fast. Consider homes with good BER ratings for long-term savings and mortgage discounts.
For Sellers
It’s a great time to sell. Demand remains high, and inventory is low. If you price your home well and present it properly, you’re likely to attract multiple offers. Homes in good condition with high energy efficiency are commanding a premium.
For Investors
Rental yields are strong, but regulation is tight. Watch for possible tax incentives or regulatory shifts. Green properties and sustainable developments offer better long-term value and tenant appeal. Consider energy performance and ongoing running costs in your investment calculations.
Conclusion
The Irish property market in 2025 is marked by high demand, tight supply, and rising prices. While interest rate cuts are offering some relief, affordability remains an issue for many buyers. Government policies are working to address supply, but meaningful change will take time.
If you’re entering the market this year—whether to buy, sell, or invest—stay informed, be prepared, and think long-term. With smart planning and the right strategy, 2025 can be a successful year in Irish property.