Marking Fastest Home Price Growth in a Decade
Ireland’s housing market continued its rapid ascent in the second quarter of 2025, with national home prices rising 3% quarter-on-quarter and soaring 12.3% year-on-year — the fastest annual growth since the introduction of mortgage lending rules in 2015, according to new data released Monday by Daft.ie.
The average listed home price across the country climbed to €357,851, up 40% from pre-pandemic levels and signaling a deepening supply-demand imbalance in one of Europe’s most strained housing markets.
“The fastest increase in housing prices since mortgage market rules were introduced a decade ago highlights the importance of addressing Ireland’s chronic and worsening housing shortage,” said Ronan Lyons, economist at Trinity College Dublin and author of the report.
The acceleration in home price inflation was widespread. Prices in Dublin matched the national pace with a 12.3% annual gain, while Waterford outpaced all major urban centers, up 15.2%. Limerick and Galway both saw gains exceeding 12%, while Cork registered a more modest 8.6% rise.
Q2 2025 Average List Prices – Major Cities:
- Dublin: €467,913 (+12.3%)
- Cork City: €369,938 (+8.6%)
- Limerick City: €311,086 (+12.8%)
- Galway City: €426,348 (+12.5%)
- Waterford City: €276,420 (+15.2%)
- Rest of Ireland: €309,954 (+12.5%)
At the heart of the surge is a persistently tight market. As of June 1st, only 12,100 second-hand homes were listed for sale nationwide — less than half the pre-COVID norm of nearly 25,000 and virtually unchanged from a year ago.
Lyons pointed to higher interest rates earlier in the decade as a key factor depressing resale listings. However, with rates now trending downward and more homeowners emerging from fixed-rate mortgage terms, early signs of recovery in second-hand supply are beginning to appear, particularly in Dublin.
Still, Lyons warned that unlocking resale inventory alone will not solve the crisis: “Ultimately, policymakers have to address their failure to recognise and provide the framework for enough new homes each year.”
The report adds urgency to the growing pressure on Ireland’s government to accelerate housing construction and address supply bottlenecks amid strong population growth and investor interest.
