Irish House Prices Surge 5.4% Amid Tight Market Conditions

UPDATE: New reports reveal that Irish house prices are experiencing a significant surge, with a 5.4% increase in the final months of 2025, according to the latest quarterly housing report from property website MyHome.ie. As of December, the national median asking price for a home reached €380,000, signaling continued demand despite a severely limited supply.

The report highlights that Dublin’s median asking price also rose to €475,000, matching the 5.4% increase seen in the national figures. In contrast, homes outside Dublin saw a slightly higher increase of 5.5%, bringing the median price to €325,000. This price inflation is a stark deceleration compared to the 8.4% increase observed throughout 2024, indicating a potential shift in the market.

Officials report that the housing market remains “extremely tight,” with only 12,200 properties listed for sale at the end of 2025. Although this represents a 6% year-on-year increase, it is still significantly lower than pre-pandemic levels of around 20,000 listings. The 52,000 residential transactions logged in 2025 reflect a mere 1.2% rebound in activity following a 3% decline in 2024.

“While prices are climbing, the market’s tightness continues to pose challenges for buyers,” said Conall Mac Coille, chief economist at the Bank of Ireland and author of the report. He noted that existing homeowners are hesitant to sell due to ongoing market uncertainties, contributing to the stagnation in second-hand home listings.

Looking ahead, the report anticipates a total of 34,000 new housing completions in 2025, marking the highest annual output since the Celtic Tiger era. However, this figure remains below the estimated 50,000 to 60,000 units needed annually to meet demand.

MyHome.ie managing director Joanne Geary commented, “While we’re seeing encouraging signs of stabilisation, the market remains tight. Ensuring consistent supply growth is crucial for a more balanced market in the coming years.”

In related news, chief economist Dermot O’Leary from Goodbody reported positive trends in housing starts, with 2,899 units commenced in December—the highest monthly figure for the year. This increase is largely attributed to a rise in apartment construction, suggesting that recent government incentives are starting to have an impact.

As the 2026 budget unfolds, the housing landscape in Ireland remains a focal point for prospective buyers and investors alike. With ongoing fluctuations in prices and supply, stakeholders will be closely monitoring the developments in the coming months.

Stay tuned for more updates as this story develops, and ensure you’re equipped with the latest insights into the evolving Irish housing market.