Residential property prices in Ireland increased by 8.7% in the year to December, reflecting a slight slowdown from the 9.6% rise recorded the previous month, according to the latest figures from the Central Statistics Office (CSO).
Despite the deceleration, housing affordability remains a significant issue, with average home prices now €200,000 higher than they were a decade ago. The median home price for properties bought in the 12 months to December stood at €355,000, compared to €327,500 in 2023 and €155,000 in 2013.
The CSO also noted that property prices are now 16.8% above the peak of the Celtic Tiger boom in 2007, underlining the continued rise in housing costs.
Dublin and Regional Market Trends
Dublin saw home prices rise by 8.3% in December, while prices outside the capital increased by 9%.
- Dublin house prices rose by 8.7%, with the strongest growth in Fingal (10%), while South Dublin saw a more modest increase of 6.9%.
- Apartment prices in Dublin climbed by 6.9%.
- Outside Dublin, house prices grew by 9.3%, while apartment prices rose by 5.8%.
- The Border region (Cavan, Donegal, Leitrim, Monaghan, Sligo) recorded the highest increase at 14.2%, whereas the Mid-East region (Kildare, Louth, Meath, Wicklow) had the slowest growth at 5.9%.
Most and Least Expensive Areas
Dún Laoghaire-Rathdown remains the most expensive housing market, with a median home price of €660,000, while Longford recorded the lowest at €182,250.
By Eircode:
- Blackrock (A94) was the most expensive area, with a median home price of €730,000.
- Clones (H23) was the most affordable, with a median price of €131,000.
Property Transactions and Long-Term Trends
A total of 5,177 home purchases were filed with Revenue in December 2024, reflecting a 2.3% increase from 5,063 transactions in December 2023.
For the full year 2024, 48,775 home purchases were recorded, marking a 2.9% decline from 50,234 in 2023.
Since the market’s lowest point in early 2013, property prices have surged by 160.4% nationally.
- Dublin home prices have increased by 157.8% since February 2012.
- Residential prices outside Dublin are up 171.5% from their lowest point in May 2013.
Expert Analysis: Supply Constraints Continue
Despite a slowdown in price growth, housing demand remains strong, while supply struggles to meet needs.
Gerry Griffin, Senior Mortgage Advisor at NFP Ireland, noted that a potential ECB interest rate cut in March could further impact the market.
“If borrowing costs fall, buyers will have more purchasing power, which could push prices even higher unless supply issues are addressed,” he warned.
Griffin advised prospective homeowners to carefully evaluate affordability, as even with lower rates, mortgage repayments remain high.
Rachel McGovern, Deputy CEO of Brokers Ireland, emphasized the urgency for government action on housing supply.
“If policymakers don’t act swiftly, homeownership will remain unattainable for many middle-income buyers,” she said, urging the government to implement the Housing Commission’s recommendations.
With prices continuing to rise and supply constraints persisting, housing affordability remains a pressing issue in Ireland, requiring decisive action from policymakers to stabilize the market.
