Residential property prices see growth rate of 8.5% in 2024

Kenneth Fox

December 2024 data for residential property prices confirmed a full-year growth rate of 8.5 per cent in 2024.

New research carried out by Davy said they expect a moderate slowdown in monthly property price increases compared to 2024, in light of the gradually increasing supply available for purchase.

Fundamentals point to higher prices for housing given the continued strength of the economy, significant new and pent-up demand, an expansionary stance for fiscal policy and falling interest rates.

Residential property prices grew 8.5 per cent in 2024 and by 8.7 per cent in year-on-year terms for December, down from a 9.6 per cent increase in November.

The full-year result for 2024 is in line with our forecast from five months ago, as month-on-month price increases often rise in H2.

Dublin prices were flat month over month in December, whereas prices in other counties increased strongly by 0.8 per cent.

With no change in prices this year from December’s level, this would leave the full-year increase in 2025 at 4.2 per cent — we forecast growth of 7 per cent.

The value of transactions grew faster by 10 per cent, mainly a reflection of strong price increases.

The value of transactions in existing homes remains far higher than for new-built units.

The volume of transactions grew 2 per cent in December, with new property transactions growing faster than existing properties, albeit from a lower level.

Overall, liquidity in Ireland’s housing market remains low with properties in 2024 changing hands only once every 44.5 years on average, compared to every 42.6 years in 2023.

We expect new supply will increase only gradually for much of this year, but the outlook for higher activity improves if several reforms are implemented, as we highlighted recently.