The average mortgage value for first-time buyers (FTBs) in Ireland has reached a record high of just under €290,000, according to new data from the Banking and Payments Federation Ireland (BPFI). This marks the highest average mortgage value since BPFI began recording the data in 2003.
Home mover mortgages are also at a historic high, with an average value of €329,873, reflecting the rising cost of property across the country. However, while mortgage values have surged, the volume of mortgages across most segments remains well below the peak levels observed in the mid-2000s. The notable exception is FTB drawdowns on second-hand or existing properties, which have nearly reached the previous peak of 7,726 in the first half of 2006.
As property prices continue to climb, the national median property value for FTBs has increased by approximately €88,000 from the first half of 2019 to the same period in 2024, now standing at €360,000. Similarly, the median property value for home movers has risen by €109,000 to €470,000 over the same five-year period.
Regions such as Wicklow, Galway, Limerick, and the Midlands have seen substantial increases in median property values for FTBs, with values rising by over €100,000 in many areas. These regions have also witnessed a shift in activity, with FTBs moving from second-hand properties to newly built homes.
In terms of property type, the report reveals that the number of FTB mortgages for new properties reached the highest first-half figures since 2008, with 3,997 mortgages drawn. However, the number of FTB mortgages on second-hand properties fell to 7,224, the lowest first-half level since 2021.
Meanwhile, home movers’ mortgages for new properties also declined, dropping to 806 in the first six months of 2024, the lowest level since 2015.
The median income for FTBs purchasing second-hand properties has increased by 5.3% year-on-year to €79,000. Conversely, the median income for those buying or building new properties fell by 3.8% to €90,000.
Brian Hayes, Chief Executive of BPFI, noted that the mortgage market is evolving towards higher-value properties, as more homebuyers prioritize energy-efficient and modern homes. He also highlighted a continuing trend where Dublin-based FTBs are increasingly looking to areas outside of the capital for their home purchases.
