Irish proprty market outlook 2025

As of January 2025, the Irish property market continues to exhibit robust growth, though at a moderated pace compared to previous years. In 2024, property prices nationally rose by an average of 10.3%, driven by strong demand, limited supply, population growth, high employment, and the increasing appeal of suburban living due to remote work trends.

Looking ahead, Reynolds & Clare Estate Agents anticipate a slight deceleration in price increases, projecting a 7%rise for 2025. This moderation is attributed to persistent supply constraints and a decrease in the availability of second-hand homes, which particularly affects first-time buyers and those seeking to move within the market.

Regional disparities in price growth have been notable. Western counties such as Clare, Donegal, Galway, Limerick, Mayo, Roscommon, and Sligo experienced significant increases, with some areas seeing annual growth rates as high as 25%. In contrast, commuter counties reported a 7.5% rise, while Dublin city prices increased by 1.8%, reaching an average of €542,000.

The supply-demand imbalance remains a critical issue. Despite government plans to deliver over 33,050 new units by the end of2024, residential construction activity has slowed, with a notable year-on-year decline in output, including a 25.3% fall in housing unit completions in Dublin during the first quarter of 2024.

Economic indicators suggest a favourable outlook, with projected GDP growth of 3.6% in 2025 and positive real wage growth due to rising nominal wages and slowing inflation. These factors are expected to support the property market, although challenges such as labour shortages and rising construction costs persist.

In summary, while the Irish property market is poised for continued growth in 2025, the rate of increase is expected to moderate. Ongoing supply constraints and regional variations will play significant roles in shaping the market dynamics.

‍