Irish Property Market Update – Summer 2025
Ireland’s property market continues to defy expectations as we move into the second half of 2025. Despite ongoing affordability pressures and rising construction costs, property prices across the country have surged to levels not seen in over a decade. Strong buyer demand, limited housing supply, and cautious seller behaviour are combining to create a highly competitive market. Whether you’re a first-time buyer, a growing family, or an investor, navigating the current landscape requires sharp insight and swift decision-making.
🔍 Market Snapshot – Q2 2025
- Nationwide Prices Up 12.3% YoY
The average home price now sits at €357,851, marking the fastest annual increase since 2015. This level of inflation suggests ongoing strain between demand and available stock, particularly in urban centres. - Quarterly Growth of 3%
Between April and June, prices jumped by a further 3%, reflecting the intensity of seasonal market activity and a continuation of low stock across most counties.
📍 Regional Performance
- Dublin: Home prices in the capital rose by 12.3% year-on-year, bringing the average price to approximately €467,900. Activity has been strongest in the mid-priced segment, with well-presented family homes often going to best and final bids.
- Cork City & Suburbs: A more modest increase of 8.6%, though the city still ranks among the most expensive outside Dublin.
- Galway: Strong demand has pushed average home prices to €426,300, up 12.5% year-on-year.
- Limerick & Waterford: The southeast is showing particularly sharp rises, with Waterford jumping 15.2%—the steepest increase of any city. Limerick follows closely at +12.8%.
⚠️ Market Drivers
- Low Turnover in Second-Hand Homes
A major contributor to price pressure is the continued shortage of listings. Many homeowners with low fixed-rate mortgages are choosing to stay put, reducing the flow of properties into the market. - Mismatch Between Policy and Reality
Despite ambitious government targets for new housing delivery, on-the-ground construction remains insufficient. Rising costs, planning delays, and labour shortages are slowing progress in key development zones. - Pent-Up Demand from Renters and First-Time Buyers
Higher rents, changes to rental regulations, and Help-to-Buy incentives are nudging many renters to enter the buying market—adding fuel to already strong demand.
🧭 What This Means for You
- Thinking of Selling?
This is a highly favourable market for sellers, with low competition and strong buyer interest. Well-presented homes, particularly in suburban and commuter areas, are achieving premium prices. - Looking to Buy?
Flexibility is key. Be mortgage-approved, act quickly, and consider emerging areas with infrastructure improvements. Buyers are wise to explore options outside the city core to find better value. - Investors
With capital growth continuing, well-chosen residential properties—especially new builds with energy-efficient ratings—offer solid returns and high tenant demand.
💬 Final Thoughts
As the Irish property market heads into the busy summer season, all signs point to continued upward pressure on prices—at least in the short term. Until supply issues are addressed meaningfully, competition will remain fierce and prices buoyant. Whether you’re buying, selling or investing, the current climate rewards proactive planning and expert guidance.