Irish House Prices: Growth Slows to 3.7% – Daft.ie Report Q1 2024

Ireland’s housing market is showing early signs of cooling, though price increases remain uneven across the country. The average home list price nationally rose by 3.7% in the year to March 2026, according to the latest report from property listings website Daft.ie. While still an increase, this represents the slowest rate of growth since late 2023, signaling a potential shift in the market dynamics.

Slowing Momentum, But Prices Remain Elevated

The 3.7% increase compares to a 5.5% rise recorded in the year to December 2025. Daft.ie’s analysis indicates that the average price of a three-bed semi-detached home in the first quarter of 2026 reached €435,000. Despite the recent slowdown, prices are currently 42% higher than they were before the Covid-19 pandemic and remain 9% below the peak levels seen during the Celtic Tiger era. This illustrates the substantial price appreciation experienced in recent years and the continued affordability challenges for many prospective homebuyers.

Transaction prices, reflecting actual sales rather than asking prices, similarly show a similar trend. Analysis of data from the Property Price Register, matched with Daft.ie’s database, suggests a 5.6% increase in prices year-on-year to March – again, the slowest rate since late 2023. This compares to a 7.4% increase in the year to December. Between December and March, transaction prices were broadly stable, suggesting the deceleration in price growth is taking hold.

Urban vs. Rural: A Two-Speed Market Emerges

The report highlights a growing divergence between urban and rural housing markets. Stabilization is appearing first in urban areas, while inflation remains more pronounced outside of the main cities. In Dublin, list price inflation slowed to 2.5% in the year to March, and transaction prices even experienced a slight decrease in the first quarter. A similar pattern is evident in other major cities, where list prices rose by just 0.7% year-on-year.

However, outside of these urban centers, price increases are significantly higher. Leinster (excluding Dublin) saw inflation of 5%, while Connacht-Ulster experienced an 8% increase, attributed to more acute supply constraints in these regions. This regional disparity underscores the uneven nature of the housing market and the challenges of addressing affordability across the country. You can find more information about property listings on Daft.ie.

Supply Constraints and Market Availability

The number of second-hand homes available for sale nationwide stood at just over 10,100 on March 1st, 2026. While this represents a 6% increase compared to the same time last year, it remains less than half the pre-pandemic level of over 26,000. The improvement in availability is largely concentrated in urban markets, with Dublin experiencing a significant increase in supply, bringing it closer to pre-Covid levels. However, much of the country continues to face severely constrained supply.

Professor Ronan Lyons, author of the Daft.ie report and a professor in Economics at Trinity College Dublin, notes that the improving availability is easing price pressures, but emphasizes that Ireland’s housing market “remains fundamentally undersupplied.” He argues that the number of new homes built each year needs to approximately double – across owner-occupied, rental, and social housing – to achieve long-term balance. This highlights the critical need for increased housing construction to address the ongoing supply shortage.

Regional Price Variations

The average price of a three-bed semi-detached home in the first quarter of 2026 varied significantly by region. In Dublin, the average list price was €626,000, while in other cities, it was €399,000. In Leinster (excluding Dublin), the average was €372,000, falling to €311,000 in Munster (excluding cities) and €252,000 in Connacht-Ulster (excluding Galway city). These regional differences reflect varying levels of demand, supply, and economic conditions across the country.

The Gap Between Asking and Selling Prices

The typical gap between the initial listed price and the final transaction price was 5.8% nationally in early 2026. This suggests that while asking prices are important, buyers are still negotiating discounts, indicating a degree of price sensitivity in the market. This gap can vary depending on location and property type, with more competitive markets potentially seeing smaller discounts.

The slowdown in price growth and the emerging two-speed market are also reflected in recent reporting from RTÉ, which detailed the 3.7% increase. RTÉ’s coverage provides further context on the broader economic factors influencing the housing market.

Looking Ahead: A Need for Increased Supply

The Daft.ie report points to a cooling housing market, but one that remains fundamentally constrained by supply. While increased availability in urban areas is easing price pressures, the situation outside of cities remains challenging. Addressing the housing shortage requires a sustained increase in construction activity across all housing tenures. The report’s author, Professor Lyons, emphasizes that a doubling of current construction rates is necessary to achieve long-term balance. The Irish Herald also covered the report, noting the slowest rate of price growth in over two years. The Herald’s article provides additional insights into the regional variations in price growth.

Further monitoring of transaction prices, supply levels, and regional trends will be crucial in assessing the future trajectory of the Irish housing market. The interplay between demand, supply, and economic conditions will ultimately determine whether the current slowdown evolves into a more sustained period of price stabilization or correction.