Ireland’s Real Estate Market: Prices, Rentals, and Trends 2024-2025
Ireland continues to be at the forefront of the European real estate market, thanks to steady price growth, high demand, and limited supply. Despite challenges such as rising interest rates and construction costs, the market shows interesting developments, especially in Dublin and its suburbs.
Housing Market: Prices and Demand
The year 2024 proved particularly challenging for homebuyers in Dublin. The average house price in the capital increased by 10.9%, while apartment prices rose by 8.4% compared to the previous year. The Dún Laoghaire-Rathdown area became the most expensive in the country, with the average house price reaching €645,000. The highest prices were recorded in Dublin 6, where the median price stood at €725,000.
Demand for housing remains high, especially for A-rated energy-efficient homes. This trend is driven largely by first-time buyers. According to Owen Reilly of Owen Reilly Estate Agents, more than 70% of properties in 2024 were sold above the asking price, with an average premium of 7%.
However, the market exhibits considerable diversity. Suburban family homes are appreciating faster than city-center apartments. The most significant price increases are observed in properties under €400,000, where younger buyers are particularly active.
Additionally, a report from MyHome.ie for 2024 showed that housing supply in Dublin fell by 27% in the first quarter compared to 2023. This has posed a serious challenge for those seeking affordable housing. For young families, energy efficiency has become a key factor, boosting the demand for modern homes.
Housing Supply
Limited supply remains the primary challenge for the market. In 2024, the number of properties for sale in Dublin decreased by 27% compared to the same period in 2023. The shortage of new builds is particularly acute. For instance, in South Dublin, only four new residential developments were available throughout 2024.
The reduction in supply is also tied to high renovation costs for older homes, which deter buyers. Furthermore, continued population growth and a robust labor market drive demand, exacerbating the imbalance between supply and demand.
On a national level, construction began on 51,935 housing units in 2024, marking a record for recent years. However, the volume of completed projects is still struggling to meet demand. It is anticipated that around 40,000 new units will be completed in 2025.
Rental Market
The rental market remains under significant pressure. In 2024, only about 2,000 rental properties were available nationwide. The average rental price in Dublin stands at €31.5 per square meter, while other cities like Galway see rates of up to €20.1 per square meter.
Rental prices across the country increased by 6.8% in 2023. The primary reasons for this are limited supply and high demand from students, young professionals, and migrants. To address this issue, the government introduced the Cost Rental Scheme to support specific groups of tenants. However, the impact of this program has been limited so far.
In Dublin suburbs such as Ballyfermot, rental prices remain more affordable, attracting tenants looking to avoid high central costs. However, even here, prices are rising due to increased demand.
Trends and Challenges
- Construction Growth: In 2024, 51,935 housing units were initiated, a 22% increase from 2023. Around 40,000 new units are expected to be completed in 2025.
- Active Buyers: Mortgage approvals for first-time buyers grew by 8.6% year-over-year, indicating sustained interest in the market.
- Buyer Migration: High prices in central Dublin are pushing many buyers to more affordable suburbs such as Dublin 5 and Dublin 13, where larger homes can be purchased at reasonable prices.
Shortage of Affordable Housing: Despite government efforts, the lack of affordable housing remains a key issue, particularly for young families and students.
Outlook for 2025
Ireland’s real estate market is expected to continue evolving under high demand in 2025. While increased construction volumes inspire optimism, they may not be sufficient to eliminate the housing deficit entirely. Average house prices are anticipated to keep rising, although the pace might slow slightly.
The rental market is likely to remain challenging, characterized by high demand and limited supply. Government programs aimed at supporting tenants could ease the situation but are unlikely to fully resolve the issue in the near term.
Conclusion
Ireland’s real estate market continues to show resilient growth despite challenges. Rising prices and limited supply remain major hurdles, especially in Dublin. However, anticipated increases in construction and government initiatives to improve housing affordability offer hope for gradual improvement. Ireland remains attractive to investors and young buyers, although addressing housing affordability requires a long-term strategy and consistent attention.
