Property prices set to rise 6% over next year

National property prices are expected to increase by an average of 6% over the next 12 months, up on the 4.5% increase forecast in summer of last year.

This is according to estate agents who are members of the Society of Chartered Surveyors Ireland (SCSI), as their Annual Residential Review and Outlook Report shows that 83% of agents now believe current property prices are either “expensive” or “very expensive”.

The report included an affordability scenario for five locations across Ireland — Cork, Meath, Kildare, Wicklow, and Galway — which demonstrate the affordability gap that exists between the total mortgage purchase limit available and average new house purchase prices.

While these scenarios identified Kildare and Wicklow as increasingly difficult areas to purchase a home, the affordability scenario for Cork showed that a couple on a combined income of €107,000, who want to buy a new three-bed semi as their first home, and have the 10% deposit, would have an excess of €21,200.

This differs from a previous affordability scenario for Cork, published in August of 2024 by the SCSI, via their Mid-Year Market Monitor Report, which showed that under the same combined income, chosen property, and having a 10% deposit, that the couple would fall short by €12,708.

Data from the Annual Residential Review and Outlook Report also shows that 61% of respondents believe that prices on a national scale are continuing to rise, but will level off soon.

Vice president of the SCSI, Gerard O’Toole, said: “Our survey responses suggest agents believe there will be a shift towards more balanced growth expectations, with less emphasis on rapid price increases.

“Given the affordability challenges facing all buyers, particularly first-time buyers, a slowdown or period of market stabilisation would be most welcome.”

In reference to the affordability scenarios, Mr O’Toole said despite Cork being identified as one of the better areas of the five covered, trends suggest the pace of property price growth is higher than income growth in several regions.

“It’s important to note that couples on lower incomes will struggle to purchase a home within the private market with their only realistic prospect seeking to qualify for either social or affordable housing,” he said.

“In the long term the only way to moderate and gradually lower the affordability gap is by ramping up the supply of new homes.”