House prices across Ireland have continued their upward trend, with new figures showing a 7% increase in asking prices nationwide over the past year and a 5.1% rise in Dublin alone.
The latest MyHome.ie property report, compiled in partnership with Bank of Ireland, highlights that while prices are climbing fastest outside the capital, demand in Dublin remains strong, with intense competition among buyers.
According to the report, the typical residential sale is now closing at 7.5% above the listed asking price which is a clear sign of ongoing bidding wars in a tight housing market.
Several factors are driving this trend, including a jump in mortgage approvals, loosened lending rules, and a persistent lack of supply. Nationally, asking prices rose by 4% in Q2 by 2.2% in Dublin and 5.4% elsewhere.
The median asking price now stands at €495,000 in Dublin, compared to €395,000 nationally and €340,000 outside the capital.
Joanne Geary, Managing Director of MyHome.ie, said it was “promising” that international uncertainty, such as the threat of new tariffs, hasn’t yet slowed the market. However, she warned that the current global climate “remains particularly unhelpful for the economy.”
Conall MacCoille, Chief Economist at Bank of Ireland, noted that average mortgage approvals in May reached €337,000 up 6.7% on the year. First-time buyers are now borrowing more, with typical loan-to-income ratios rising to 3.4x from 3.2x in 2022. This change, he said, has pushed up house prices by €15,000 - €20,000.
MacCoille said this trend may soon stabilise: “The proportion of first-time buyers taking out loans of 3.5–4 times their income is now steady at just under 50%. If this holds, house price inflation may return to more moderate levels.”
The report also anticipates an increase in housing completions next year, with the number of homes under construction in Dublin at the end of 2024 up 20% year-on-year. Still, this will fall short of the 50,000 - 60,000 units needed annually to meet national demand.
“The focus must remain on increasing the stock of homes, especially urban apartments,” MacCoille added.
The average time to sale agreed is now just 2.6 months, close to historic lows, further reflecting the pressure in the Dublin property market.
