Further rises in house prices
According to the latest residential market review and outlook from leading property advisors DNG, house prices are set to continue rising this year, predicting low to mid-single digit increases. The anticipated continued rise in values follows sustained increases recorded throughout 2025, with the DNG National Price Gauge (NPG) (excluding Dublin) recording an increase in the average price of a second-hand home of 7.4% last year, down only marginally on the rate of growth witnessed in 2024 (+8.4%).
All regions of Ireland recorded robust growth in average residential property prices during 2025, with the DNG NPG recording the strongest rate of growth in the Mid-West region (+9.9%), followed by the Midlands region which saw prices increase by 9.4% on average. The Border and Mid-East regions saw the lowest rate of price growth outside Dublin at 6.3%. At a national level excluding Dublin, the average price of a second-hand home recorded by the NPG is now €321,603 compared to €299,429 at the end of 2024.
A similar picture emerged in the Dublin market over the course of last year with residential prices rising, but at a lower rate than seen elsewhere. Second hand house prices increased in the capital by 5.2% on average in 2025 according to the DNG House Price Gauge (HPG). However, the rate of price appreciation in Dublin was markedly lower than the rate recorded by the HPG in 2024, when the average price of a residential property in the capital increased by 9.6%. South Dublin recorded the highest rate of price increase last year (+5.7%) whilst North Dublin and West Dublin recorded increases of 4.6% and 4.8% respectively. The results show that the average price of a resale property in Dublin now stands at €613,078 compared to €582,772 at the end of 2024.
With regard to investment properties, DNG’s analysis points to a worrying increase in the number of small/medium size landlords leaving the Dublin rental market in the second half of last year after the proposed rental sector reforms, due to come into effect this March, were announced. DNG Research shows that in the first six months of 2025, 20% of second-hand sales in the capital were investors selling investment properties, but in the second half of last year this had risen to 27% of sales, as more investors decided to exit the market post the announcement of planned reforms the sector. To sustain a functioning rental market, the Government needs to review its proposed reforms as a matter of urgency to halt the exodus of landlords from the market and to implement meaningful measures designed to attract new landlords into the market.
FIRST-TIME BUYERS
An analysis of DNG buyers during the final three months 2025 reveals that first-time buyers continued to dominate the second-hand market in the capital, accounting for 51% of purchases of resale homes. In addition, 20% of purchasers were buying to trade up in the market whilst only 4% of buyers were doing so to trade down in the market.
Looking at the outlook for the year ahead, DNG welcomes the launch by Government of a new housing action plan last November, focussed on the delivery of 300,000 new homes by 2030 whilst noting that new housing output will have to ramp up significantly in order for those targets to be reached. DNG is forecasting that prices will continue to rise in 2026 with the majority of any increase coming in the first half of the year. Overall, it expects prices in the capital to increase by 3-4% this year, with prices outside Dublin rising at a slightly faster single digit rate due to the continued lack of new homes available to purchase by private buyers, combined with robust demand underpinned by real wage growth, falling interest rates and the strong economic environment.
Commenting on the figures, DNG’s Director of Research Paul Murgatroyd said: “Across Dublin there was a welcome moderation in the rate of house price inflation last year compared to 2024. In the twelve months to December 2024 the DNG HPG recorded annual price growth of 9.2%, but by December last, the annual rate had almost halved to 5.2%. Outside the capital price appreciation was stronger last year at around 7.4% and a similar trend is anticipated in 2026.”
POSITIVE TRENDS
Mr Murgatroyd further added: “Looking ahead, positive demographic trends, the current low interest rate environment and a solid economic backdrop all point toward another year of price inflation in the residential market and, whilst supply is gradually increasing, it is by no means at a level to satisfy demand in the market which means prices will continue to rise across the country.”
DNG Chief Executive Keith Lowe added: “Legislative changes due in March for buy-to-let properties are expected to accelerate the already strong trend of small landlords exiting the market. This will prove to be very negative for supply in the rental sector as the year progresses. However, on the flip side, it will lead to a further increase in the number of properties available to purchase by owner occupiers. We are urging Government to reconsider the proposed rental sector changes ahead of the March implementation date and would urge them to give serious consideration to allowing small landlords to sell one property with vacant possession per year, and to allow large landlords to sell up to nine units per annum with vacant possession, akin to the Tyrellstown Amendment enacted in 2017 to prevent mass evictions in any one development.”
He continued: “Whilst the final new housing completions total for the year 2025 will be a slight improvement on the number delivered in 2024, supply will have to ramp up significantly and quickly if the Government is to meet its new housing targets out to 2030. The total number of new homes built last year will be in the region of 32,000 but only around one third of these are being sold to individual private buyers. The bulk of units are being reserved for social housing, affordable house sale, cost rental or PRS block sales. Government is making progress in the new homes sector and the Help to Buy scheme and the First Home Shared Equity Mortgage scheme are assisting buyers to purchase their first new build home where in many circumstances they would not have been able to do so, and at the same time this is freeing up much needed rental accommodation.”