Irish Housing Market Shows Signs of Cooling, But Price Pressures Remain
Ireland’s housing market is exhibiting early indications of a slowdown, with the rate of price increases easing to its lowest level in over two years. However, despite this cooling trend, prices remain significantly above pre-pandemic levels and supply constraints continue to exert upward pressure, particularly outside of urban areas.
According to the latest report from property website Daft.ie, the average listed home price nationally rose by 3.7% in the year to March 2026.1 This marks the slowest rate of increase since late 2023.2 Analysis of transactions registered in the Property Price Register suggests a 5.6% increase in prices over the same period, also the slowest rate since 2023.4
Price Levels Remain Elevated
Despite the slowing rate of increase, average house prices remain substantially higher than before the COVID-19 pandemic. Listed prices are currently 42% above pre-Covid levels and 9% below the peak of the Celtic Tiger property boom.3
As of the first quarter of 2026, the average price of a three-bed semi-detached home nationally stood at €435,000.4
Urban vs. Rural Market Dynamics
The cooling effect is not uniform across the country. The report highlights a “two-speed market,” with stabilization appearing first in and around urban areas where supply is improving.2
In Dublin, list price inflation slowed to 2.5% in the year to March, while transaction prices experienced a slight decrease in the first quarter.4 A similar trend is observed in other major cities, with list prices rising by only 0.7% year-on-year.
However, outside of the main cities, price increases remain more robust, ranging from 5% in Leinster to 8% in Connacht-Ulster, reflecting ongoing supply shortages.4
Supply Constraints Persist
The number of second-hand homes for sale nationwide increased to just over 10,100 on March 1st, representing a 6% rise year-on-year.1 However, this figure remains less than half the pre-pandemic norm of over 26,000.1
Ronan Lyons, author of the Daft.ie report and economics professor at Trinity College Dublin, emphasized that Ireland’s housing market remains fundamentally undersupplied. He stated that the number of new homes built each year needs to approximately double across all housing types – owner-occupied, rental, and social housing – to achieve long-term balance.1
The typical gap between the listed price and the final transaction price has narrowed to 5.8% nationally in early 2026, down from 1% in the last six months.1
Related reading