Residential property prices in Ireland rose by 7.9% in the year to May, slightly higher than the 7.6% increase recorded in the 12 months to April, according to the Central Statistics Office’s latest data, reports RTE.
The pace of price growth was greater outside Dublin, with prices increasing by 8.7%, compared to a 6.9% rise in the capital.
The median price for a home purchase during the year up to May was €370,000, reports RTE.
Blackrock in Dublin (Eircode A94) was the most expensive area over the 12-month period, with a median price of €770,000. Castlerea in Roscommon (Eircode F45) had the lowest median price, at €150,000.
“In the 12 months to May 2025, house prices in Dublin rose by 6.8% while apartment prices increased by 7.2%. The highest house price growth in Dublin was in Fingal at 9.3% while Dún Laoghaire-Rathdown saw a rise of 5.1%,” the CSO said, reports RTE.
Outside the capital, house prices were up 8.9% and apartment prices rose 6.7%.
The CSO noted that the Border region — comprising Cavan, Donegal, Leitrim, Monaghan, and Sligo — had the highest house price growth outside Dublin at 11.1%, while the South-East (Carlow, Kilkenny, Waterford, and Wexford) saw a 7.7% increase.
Responding to the figures, Trevor Grant, chairperson of Irish Mortgage Advisors, pointed out that property prices are rising faster than incomes, making homeownership increasingly unaffordable, especially for first-time buyers now competing with trader-uppers for a shrinking supply of second-hand homes, reports RTE.
He added that the persistent gap between supply and demand means the situation is unlikely to improve in the near future.
Mr Grant said that, based on BPFI data, the typical mortgage for a first-time buyer has increased by 36% since 2019, now coming in just under €300,000 — and even higher in more expensive areas, reports RTE.
“Despite that pressure, mortgage approvals have hit record highs. Buyer appetite remains strong, especially among first-time buyers,” he said, reports RTE.
“One in three first time buyer (FTB) homes were valued over €400,000 in 2024, three times the 2019 share. And it has recently been reported that average household incomes for new buyers sits at €85,000, so it’s clear that affordability continues to be stretched,” he stated, reports RTE.
He also noted that although mortgage rates have fallen recently, with some lenders now offering below 3%, affordability remains a major issue.
According to recent reports, properties are often selling significantly above asking price — with one in six or seven going for 20% more, he added, reports RTE.
Mr Grant stressed that the core problem is the ongoing housing shortage — with just over 30,000 completions expected in 2024.
“Yet we know we need at least 50,000 new homes per year for the next five years to meet demand,” he said, reports RTE.
He explained that the lack of private sector supply is especially severe, and that developers are contending with rising construction costs, planning delays, and labour shortfalls.
“Delays in connecting new homes to essential utilities like water and electricity are also adding to delivery timelines and further restricting the pace of supply. Without targeted intervention to boost output and streamline the development process, house price inflation will persist,” he added, reports RTE.
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