Real Estate Market in Ireland: Growth Drivers and Current Trends

The Irish real estate market continues to show steady growth, driven by high demand, limited supply, and a strong economy. In recent years, property prices have been rising, and rental rates continue to increase. This article examines the key factors influencing the market, major trends, and future projections.
Growth Drivers of the Real Estate Market
1. Limited Housing Supply
The volume of new housing construction remains insufficient to meet the growing demand. In 2024, around 32,000 new homes were built, significantly below the required 52,000 units per year. This shortage of available properties continues to drive up prices, particularly in major cities where demand far exceeds supply.
2. High Demand
Housing demand in Ireland remains consistently high due to population growth, economic stability, and increasing employment. This is especially evident in Dublin, Cork, and Galway, where properties are in high demand from both local residents and investors.
3. Economic Growth and Rising Incomes
Ireland’s economy continues to grow, leading to rising wages and increased purchasing power. Many people view real estate as a reliable investment, further boosting market activity.
4. Accessible Mortgage Loans
Despite global trends of increasing interest rates, mortgage conditions in Ireland remain relatively favorable. This makes homeownership more attainable and sustains demand for residential properties.
Current Trends in the Real Estate Market
1. Rising Property Prices
In 2024, property prices increased by an average of 7.2%. Dublin saw a 7.1% rise, while prices outside the capital grew by 7.3%. In 2025, prices are expected to rise by another 10%, particularly in major cities.
2. Increasing Rental Costs
Rental prices have also continued to rise. The average rent across the country is €1,450 per month, while in Dublin, it has reached €2,100. The reason for this increase is the limited availability of rental properties and strong demand from both local residents and expatriates working in Ireland.
3. Declining Housing Affordability
Rising property and rental prices make housing less accessible for many citizens, particularly young families and lower-income groups. This growing issue calls for government intervention to improve housing accessibility and expand affordable housing options.
4. Growing Interest from Investors
Ireland remains an attractive destination for real estate investors. High demand, a stable economy, and rising property values encourage more investment transactions, particularly in Dublin, where the market is one of the most dynamic in Europe.
Property Prices in Different Regions
Property prices in Ireland vary significantly by region. The average property prices in 2024 are as follows:
• Dublin – Approximately €542,000 per home, with a 1.8% increase per quarter.
• Galway – €370,000, showing a 10% annual growth.
• Mayo – The highest annual price increase at 25%.
• Clare – Prices rose by 21% in one year.
On average, the price of a three-bedroom home in Ireland is around €330,600, which is 9% higher than the previous year.
Future Projections
1. Prices Will Continue to Rise, but at a Slower Rate
In 2025, price growth is expected to slow down, though property values will still increase by 6–8% per year. The ongoing supply shortage and high demand will keep prices rising.
2. Government Support for Homebuyers
Authorities are working on measures to improve housing affordability, including support programs for first-time buyers, tax incentives, and subsidies for purchasing new homes.
3. Expansion of the Construction Sector
Ireland plans to increase housing construction, but challenges such as financing difficulties, labor shortages, and bureaucratic hurdles may slow this process.
The Irish real estate market remains one of the most rapidly growing in Europe. A combination of strong demand, limited supply, and economic stability continues to drive price increases. However, housing affordability is becoming a growing concern, requiring government intervention and new support mechanisms for buyers. In 2025, property prices are expected to continue rising, though at a more moderate pace.