Estate agents Sherry FitzGerald have reported a 7.2% increase in the average value of second-hand homes across Ireland in 2024, a significant rise from the 3.8% growth recorded in 2023. The figures, released today, reflect continued strong demand in the housing market, despite ongoing challenges.
In Dublin, house prices rose by 7.1% year-on-year, with a notable 1.1% increase in the final quarter alone. This quarterly growth more than doubled the pace recorded in the same period last year. Outside the capital, the price inflation for second-hand homes reached 7.3%, with the Mid-West and Midlands regions seeing the highest growth at 9.9% and 9.7%, respectively.
However, while prices have risen, the volume of housing transactions has seen a decline. Sherry FitzGerald reported that around 33,700 housing transactions were completed in the first nine months of 2024, a 6% decrease compared to the same period in 2023. This decline was primarily driven by an 8% drop in second-hand home sales, which was partially offset by a 5% increase in new home transactions.
Investor activity in the housing market continued to diminish, with only 11% of second-hand sales involving investor buyers. A third of vendors were also investors exiting the market, the estate agents added.
The supply of housing remains a critical issue. Sherry FitzGerald noted that only 21,650 residential units were completed between January and September 2024, a 3.1% decrease from the same period in 2023. The estate agents estimate that 62,000 new homes are needed annually to meet demand, but the current rate of completions is expected to cover only half of this need.
Marian Finnegan, Managing Director of Sherry FitzGerald, highlighted that the growth in home prices across both urban and rural areas is largely driven by persistent supply-side challenges. “We anticipate further price inflation of 8-10% in 2025 unless these issues are addressed,” she said.
Ms. Finnegan also called for urgent government intervention to address the housing crisis, particularly in relation to rental market stability. “The formation of a new government must prioritise housing at the top of its agenda,” she said, stressing the importance of extending the Help-to-Buy scheme and attracting private investment. She also noted that retaining landlords in the rental market is crucial for stabilising rents and ensuring affordability.
As Ireland’s housing market grapples with these challenges, the outlook for 2025 remains uncertain without significant policy changes.
