Irish Property Market: Asking Price Inflation Hits Two-Year Low in Q1 2026
The Irish housing market is seeing a notable shift in momentum. According to the Q1 2026 Property Report from MyHome.ie, in association with Bank of Ireland, annual asking price inflation has dropped to 4.7% nationwide. This marks the lowest rate of growth in over two years, continuing a trend of easing inflation for the fifth consecutive quarter.
- National Inflation: Annual asking price inflation slowed to 4.7% in Q1 2026.
- Regional Divergence: Prices rose by 6.1% outside Dublin, compared to 2.9% within the capital.
- Median Prices: The national median asking price for new instructions was €385,000.
- Market Pressure: Despite slower inflation, competition remains high, with median transaction prices sitting 7% above original asking prices.
Regional Price Analysis: Dublin vs. The Rest of Ireland
The slowdown in price growth isn’t uniform across the country. There is a clear divide between the capital and rural areas, with Dublin experiencing a much more significant cooling effect.
Dublin Market Trends
Asking price inflation in Dublin has fallen to 2.9%, the lowest rate the capital has seen in nearly three years (excluding a 0.6% rate in Q2 2023). The median asking price for new instructions in Dublin stood at €450,000 in the first quarter of 2026.
Outside the Capital
In the rest of Ireland, annual asking price inflation remains higher at 6.1%. The median asking price for new instructions in these areas was €330,000. Quarter-on-quarter, prices in the rest of the country rose by 1.7%, compared to a slight 0.2% increase in Dublin.
Spotlight on Kerry: Significant Local Growth
Whereas national trends reveal a slowdown, some counties continue to witness sharp increases. Kerry, in particular, experienced a rise in house prices of over 10% to the end of the first quarter of 2026.
- Four-Bedroom Semi-Detached: The median asking price was €275,000, representing a 10.89% increase over twelve months.
- Two-Bedroom Apartments: Average prices reached €205,000, a jump of 18.84% annually, despite a quarter-on-quarter reduction of 2.3%.
- Overall Average: The average home price in Kerry at the end of Q1 was €270,000, a 10.2% annual increase.
Market Drivers and Future Outlook
Bank of Ireland chief economist Conall Mac Coille notes that while inflation is slowing, the market remains competitive. Properties are moving quickly, with the median property taking just one month to head “sale agreed.”
The Impact of Little Landlords
A defining feature of the 2026 market is the exit of small landlords. Many are selling their properties due to stricter regulations and the introduction of six-year minimum tenancies, which increases the supply of homes for sale but alters the rental landscape.
Construction and Forecasts
Bank of Ireland forecasts that 37,000 to 38,000 homes will be built in 2026, an increase from the 36,000 built in 2025. However, Mac Coille warned that rising oil prices could create headwinds for the construction sector. The forecast for house price inflation is expected to slow toward a 4% rise for the full year.
Frequently Asked Questions
What is the current national median asking price?
The median asking price for new instructions nationally was €385,000 in Q1 2026.
Why are small landlords leaving the market?
The exodus is being driven by the introduction of new, stricter regulations and six-year minimum tenancies.
How does the current inflation rate compare to previous years?
At 4.7%, the current national rate is the lowest in over two years, with the only lower recent rate being 4.1% in Q4 2023.