Introduction

The Irish housing market continues to face significant challenges in 2025. This analysis examines current trends and provides a forecast for the next 12 months.

Current Market Conditions

Housing prices have increased by 8.3% year-over-year, with the average home now costing €372,000 nationwide. Dublin prices have seen an even steeper climb at 9.7%.

Supply and Demand Gap

New housing starts have improved to 28,500 annually, but still fall short of the estimated 35,000 units needed to meet demand.

Interest Rate Impact

With ECB rates holding steady at 3.5%, mortgage affordability remains a significant hurdle for first-time buyers.

Regional Disparities

While Dublin and commuter counties face the most severe affordability challenges, regional cities like Cork and Galway are now seeing similar pressures.

Forecast

We predict continued price growth of 5-7% over the next 12 months, with potential moderation if supply improvements can be maintained.