Irish House Price Inflation Hits 2.5-Year Low

CSO Residential Property Price Index Breakdown

Property prices nationwide rose by 5.5 percent in the 12 months leading to July, down slightly from a 5.6 percent increase recorded in June, according to the CSO’s residential property index. This continues a steady deceleration from a recent peak of 10.1 percent in August 2024.

Regional variations remain sharp. In Dublin, overall property price inflation fell to 4.4 percent, with house prices up 3.7 percent and apartments climbing 6.8 percent. Dún Laoghaire-Rathdown recorded the capital’s highest house price growth at 6.0 percent, while Dublin City saw a modest 2.3 percent rise. Outside the capital, prices climbed 6.4 percent annually, matching June’s rate. The Border region—covering Cavan, Donegal, Leitrim, Monaghan, and Sligo—saw the steepest regional jump at 11.0 percent, while the Mid-West lagged behind at 4.4 percent, according to data cited by MyHome.ie.

Transaction Values and Median Prices Paid by Buyers

Households filed 4,769 market-rate dwelling purchases with the Revenue Commissioners in July, totaling €2.17 billion in transactions. This comprised 3,418 existing dwellings valued at €1.51 billion and 1,351 new builds worth €665.3 million. First-time buyers accounted for 2,035 of these purchases—an 8.5 percent increase compared to July of the previous year.

The national median price for a residential property stood at €399,999 in July. Dún Laoghaire-Rathdown recorded the highest median price at €684,411, while Longford registered the lowest at €200,000. For specific Eircode areas, Dublin’s A94 district in Blackrock reached a median price of €850,500, contrasting with Roscommon’s F45 area in Castlerea, where the median price was €158,500.

Interest Rate Pressures and Industry Warnings

Market experts warn that the slight easing in inflation will do little to help aspiring buyers secure properties amidst tightening financial conditions. Trevor Grant, chairman of the Association of Irish Mortgage Advisors, noted that while the cooling trend is welcome, prices are still rising faster than inflation in many other sectors.

The European Central Bank raised key interest rates in June and again in response to energy shocks stemming from the Iran conflict. Genevieve McGuirk, chief executive of the Institute of Professional Auctioneers & Valuers (Ipav), stated that rising borrowing costs will intensify competition for buyers already contending with cash purchasers, higher earners, and State bodies. Furthermore, higher rates threaten development financing and construction viability, according to McGuirk.

Rachel McGovern, deputy chief executive at Brokers Ireland, added that lenders typically grow risk-averse in a rising interest rate environment, which could lead to stricter lending terms or the withdrawal of certain mortgage products by the end of the year. Concurrently, the Central Bank has revised down its forecasts for new home completions for this year and next, citing a slowdown in housing commencements.

Frequently Asked Questions

What was the annual rate of house price inflation in July?

According to the CSO, house price inflation slowed to 5.5 percent in the 12 months to July, down from 5.6 percent in June.

What is the median residential property price in Ireland?

Data from Revenue and the CSO shows households paid a median price of €399,999 for a residential property in July.

Where are house prices growing the fastest?

Outside Dublin, the Border region recorded the highest annual house price growth at 11.0 percent, while Dún Laoghaire-Rathdown led Dublin with a 6.0 percent increase.