Irish house price inflation has reached its highest level in a decade, with property prices climbing almost 13 percent compared to the same period last year, according to the latest report from property website Daft.
The national average listing price has reached €357,851, representing a 3 percent increase during the second quarter of 2025 alone. Current prices now stand 40 percent higher than pre-COVID levels, highlighting the dramatic impact of the pandemic on Ireland’s housing market.
The report attributes the continued price acceleration to persistently low residential supply and delays in the housing development pipeline. Unlike previous years when Dublin dominated price increases, the capital’s 12.3 percent rise is now broadly in line with inflation rates across the rest of the country.
Waterford City recorded the steepest price increases at 15.2 percent, while Dublin maintained the highest absolute prices with an average listing of €467,913. Other major cities showed significant increases: Cork City averaged €369,938 with an 8.6 percent rise, Limerick City reached €311,086 with a 12.8 percent jump, and Galway City hit €426,348, up 12.5 percent. Properties outside major urban centers averaged €309,954, also rising 12.5 percent.
The shortage of second-hand properties continues to drive market pressures. The number of previously-owned homes available for sale on June 1 was approximately 12,100, less than half the pre-2020 levels. This scarcity is pushing up prices for both new and existing properties across all market segments.
Report author Ronan Lyons noted slight increases in Dublin’s second-hand listings but emphasized these gains remain insufficient to meet demand. He stressed that addressing supply shortages in the existing market represents only “part of the solution” to Ireland’s housing crisis.
“Ultimately, policymakers have to address their failure to recognise and provide the framework for enough new homes each year,” Lyons stated. Available statistics from independent bodies suggest the government will again fall short of its housing targets for 2025.
The government hopes recent policy changes will stimulate investment in new construction. New rental sector regulations taking effect next March will allow landlords to increase rents to market rates for new tenants every six years, potentially encouraging greater investment in the rental market.