House and apartment asking prices in Ireland are rising at an annual rate of 7%, according to the latest quarterly property report from MyHome.ie, compiled in partnership with Bank of Ireland. The report highlights continued momentum in the housing market, driven by increased mortgage lending and a persistent shortfall in supply.
Outside Dublin, asking prices rose by 7.9% over the past year, while prices in the capital grew by 5.1%. The average approved mortgage in May reached €337,000 — a 6.7% increase compared to the same time last year.
One of the report’s more striking findings is that homes are now selling for 7.5% above their asking price on average, reflecting intense competition among buyers in a market still struggling to meet demand.
Bank of Ireland’s Chief Economist Conall Mac Coille attributed the continued price growth to a number of factors, including recent changes to lending rules. “The loosening of the Central Bank mortgage lending rules has had a notable impact,” he said. “The average first-time buyer borrowed 3.4 times their income in 2024, up from 3.2 times in 2022. That change alone has pushed up house prices by €15,000 to €20,000.”
Mac Coille also noted that external uncertainties — including market instability linked to U.S. President Donald Trump’s announcement of “Liberation Day” tariffs — have not had a significant effect on Ireland’s housing market.
The economist cautioned, however, that the persistent imbalance between supply and demand remains a key issue. “We may see some improvement in housing completions this year, but output will still fall well short of the 50,000 to 60,000 new units required annually to meet demand,” he warned.
The MyHome.ie report points to an increasingly competitive housing landscape, particularly for first-time buyers, many of whom are relying on higher borrowing limits to enter the market. The rising cost of housing and the growing gap between demand and supply continue to fuel calls for more robust policy measures to accelerate new housing development.
As the housing market heads into the latter half of the year, attention is likely to turn to whether increased lending capacity and improved supply pipelines will be enough to rein in rapid price inflation. For now, however, demand continues to outstrip availability, keeping upward pressure firmly on prices.
