Irish News - Irish Property Prices Rise by 8% as Housing Demand Continues to Outstrip Supply

Home prices across Ireland continue to climb, rising by 8% in the year to February 2025, according to the latest figures released by the Central Statistics Office (CSO).

Although this marks a slight slowdown from the 8.2% annual increase recorded in January, the data shows that housing affordability remains under pressure, particularly outside the capital.

Regional Breakdown: Rural Areas Outpace Dublin

House prices in regions outside Dublin rose by 8.7%, surpassing the 7.1% increase seen in the capital. The national median price for a residential property now stands at €360,000.

Among counties, Dún Laoghaire–Rathdown topped the list with a median home price of €670,000, while Leitrim remained the most affordable, with a median price of €185,000.

On an Eircode basis, Blackrock in Co Dublin was the priciest area, with homes fetching a median of €747,750. Castlerea in Co Roscommon was at the opposite end of the scale, with properties averaging €148,000.

Prices Surpass Previous Peaks

The CSO noted that national property prices have increased by 161.6% since their lowest point in early 2013. More notably, prices are now 17.3% above their previous peak in April 2007, during the height of the property boom.

Mortgage Experts Caution Against Inflationary Pressures

Gerry Griffin, Senior Mortgage Advisor at NFP Ireland, said demand is still far outpacing supply—particularly in urban centres—despite a slight cooling in price growth.

“The core issue remains the imbalance between supply and demand,” he said. “Until more housing comes onto the market, we can expect continued pressure on prices.”

Griffin also urged prospective buyers to focus on long-term affordability, not just what they can technically borrow.

“Even as mortgage rates begin to soften, the reality is that repayments will stay high due to elevated house prices. Lower borrowing costs may improve access to credit, but without significant improvements in supply, they could just push prices higher,” he explained