The latest Daft.ie House Price Report reveals that housing prices across Ireland significantly rose in the first quarter of 2025, with an average increase of 3.7%. The national average listed price has reached €346,048, reflecting an 11.6% year-on-year increase and a 35% surge since the start of the COVID-19 pandemic. This marks the second-highest inflation rate in the last decade, surpassed only by a rise of 11.7% in early 2017.
Dublin and the wider Leinster region have been key drivers of this price increase. Dublin's housing prices have surged by 12.2%, the highest in eight years, while the rest of Leinster has seen an even sharper rise of 13.4%, the steepest since 2017. Galway and Limerick have also experienced significant price hikes, with increases of 13.2% and 13.8%, respectively, surpassing the national average. Meanwhile, Waterford and Cork have seen more modest increases at 11.2% and 9.2%, respectively.
This price surge is coinciding with a severe shortage of available properties. As of March 1st, fewer than 9,300 second-hand homes were on the market nationwide, a 17% year-on-year decline and the lowest figure since records began in 2007. Notably, this is the first time since 2007 that the number of available second-hand homes has fallen below 10,000.
According to experts, the primary factor behind the rapid price rise is the shortage of second-hand homes. While new-build transactions have increased, the second-hand market remains exceptionally tight. He also pointed out that the rising interest rates have prompted many homeowners to lock in fixed-rate mortgages for longer periods, further reducing liquidity in the second-hand market. Despite the introduction of mortgage market regulations to prevent another property bubble, the persistent housing shortage has led to a 75% price increase since then, largely due to insufficient supply rather than excessive credit.
Regarding specific cities, the average list price in Dublin is now €460,726, up 12.2%, while Cork's average price is €358,676 (up 9.2%). Limerick and Galway have seen notable increases, with average prices of €300,253 (up 13.8%) and €409,482 (up 13.2%), respectively. Waterford's average price is €260,657, an 11.2% increase, while the rest of the country has seen a rise of 11.2%, with an average price of €296,346.
