'Outlook bleak' as house price rises show no sign of slowing

The "outlook is bleak" for home buyers as the latest official data showed residential property prices rose at an annual rate of 7.9 per cent in May, up from 7.6 per cent the previous month.

The comment from Brokers Ireland came as the Central Statistics Office confirmed that home prices in Dublin rose by 6.9 per cent in May, while those outside the capital jumped 8.7 per cent.

The median, or midpoint, price of a dwelling purchased in the 12 months to May 2025 was €370,000. The highest median price was €670,000 in Dún Laoghaire-Rathdown, while the lowest median price was €186,000 in Leitrim.

The most expensive Eircode area over the period was A94 (Blackrock, Dublin) with a median price of €770,000, while F45 (Castlerea, Roscommon) had the least expensive price of €150,000, the CSO said.

Rachel McGovern, deputy chief executive at Brokers Ireland, said the latest figures are bleak for prospective buyers, given the shortage of supply.

"The latest ESRI data forecasting just 33,000 [new housing] units for 2025 and 37,000 in 2026, well below Government targets, is very worrying.

"It’s hard to envisage how any new housing plan by Government can turn this around in the short-term," she said, adding that it will take "dramatic and unprecedented" measures.

Trevor Grant, chairman of the Association of Irish Mortgage Advisors, said prices continue to rise faster than incomes, pushing homeownership further out of reach for many.

"With supply still falling well short of demand, this imbalance is not likely to correct itself anytime soon," he said.