Irish residential property prices have climbed more than 8% in the 12 months to January, according to new figures from the Central Statistics Office (CSO). This significant increase comes as the Central Bank forecasts that the Government will miss its housing construction targets over the next three years.
The CSO’s latest property price index reveals that the median price of a home sold in Ireland over the past year was €359,999, with prices now considerably higher than their Celtic Tiger peak. The data shows a continuing trend of faster price growth outside Dublin, where prices rose by 8.6%, compared to 7.5% in the capital.
Several regions are experiencing double-digit inflation, including areas covering Cork, Kerry, Clare, Limerick, Tipperary, Mayo, Galway, Roscommon, and the border counties. The acceleration in house prices has been particularly pronounced since Ireland emerged from the COVID-19 pandemic.
For perspective, the median home price in Ireland stood at €261,000 in the 12 months to January 2021. This figure rose to €305,000 by January 2023 and has now reached just under €360,000 – representing a 38% increase in just four years.
Trevor Grant, chairperson of Irish Mortgage Advisors, said the latest figures demonstrate that buying a house has become “unachievable” for many young people in Ireland. “If house prices are ever to be kept in check, the perennial problem at the heart of the Irish housing crisis — that is, the huge shortage of, and high demand for, housing — needs to be tackled,” Grant stated.
Meanwhile, the Central Bank has revised downward its forecasts for housing completions in its latest quarterly bulletin. The bank now predicts 35,000 completions in 2025, 40,000 in 2026, and 44,000 in 2027 – significantly below the Government’s target of 41,000 for 2025 alone.
According to The Irish Examiner, this comes after approximately 30,000 homes were built in Ireland last year, despite pre-election claims from Government ministers that the figure would approach 40,000.
The Central Bank identified several factors constraining housing supply, including “low productivity in the construction sector, delays in utility connection, delays in planning system and a shortage of zoned and serviced land in high-demand areas.”