The Irish housing market experienced its largest home price increase in seven years during 2024, with national average prices rising by 9%, according to Daft.ie’s latest House Price Report. By Q4, the typical listed price for homes nationwide reached €332,109, marking a 1.4% quarterly rise and a significant 30% increase compared to pre-pandemic levels.
Dublin Leads Price Growth
Dublin saw home prices increase for the fourth consecutive quarter, mirroring the national average of 9%. This marked the highest rate of inflation in the city since late 2017. The city’s average home price by Q4 stood at €442,909. This trend reflects strong demand paired with a constrained supply, pushing prices up across the board.
Price Growth in Other Cities
Other key cities followed a similar trend, with Galway City also experiencing a 9% price increase, bringing the average price to €389,742. Limerick City saw a slightly lower increase of 8.2%, with average home prices reaching €284,138. Cork and Waterford cities had more moderate growth, each experiencing a 6.3% rise, bringing average prices to €347,263 and €247,236 respectively.
Supply Shortage and Regional Variations
The supply of second-hand homes nationwide hit a record low, with fewer than 10,500 properties available for sale in December, a 15% decrease from the previous year. This shortage led to regional inflation differences. For example, Leinster saw a significant 11.1% price increase, while Connacht-Ulster had a more modest 5.3% rise.
Expert Insight
Ronan Lyons, an economist at Trinity College Dublin, attributed the surge in prices to weak supply and strong demand, with demand growing at nearly 5% per year due to rising incomes and employment. Despite an increase in newly-built homes, the volume of second-hand homes on the market remains low, contributing to the price escalation.
“The solution lies in increasing the volume of homes being built to address the growing demand,” Lyons concluded.
Average Home Prices by Region (Q4 2024)
- Dublin: €442,909 (up 9%)
- Cork City: €347,263 (up 6.3%)
- Limerick City: €284,138 (up 8.2%)
- Galway City: €389,742 (up 9%)
- Waterford City: €247,236 (up 6.3%)
- Rest of Ireland: €284,163 (up 9.2%)
This report highlights the continued rise in Irish property prices, fueled by a combination of limited supply and strong market demand. As the market continues to evolve, addressing the supply shortage remains critical for sustaining future growth.
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