The median price of a home in Dublin has reached €500,000, as Ireland’s housing shortage continues to impact the property market. Data released by the Central Statistics Office (CSO) indicates that property prices nationally increased by 7 per cent in 2025, though the rate of growth has slowed from 8.7 per cent the previous year.
The Dublin market exhibits significant internal variation. In Dun Laoghaire-Rathdown, the median house price now stands at €679,999, while in Fingal, it is €475,000. Nationally, the median price paid for a home in 2025 was €387,000. Outside of Dublin, Wicklow recorded the highest median price at €454,000, while Donegal remained the most affordable county, with a median price of €195,000.
The slower pace of price increases, while notable, has not translated into improved affordability for prospective buyers. The 7 per cent national increase outpaces average wage growth, continuing to squeeze purchasing power. Dublin experienced a price rise of 5.6 per cent, while prices outside the capital increased by 8.1 per cent compared to December 2024.
The cost of modern homes also saw an increase, with residential property prices for new dwellings in the fourth quarter of 2025 being 6 per cent higher than in the same period of 2024. This follows a 5.5 per cent annual increase in the cost of new dwellings over the preceding 12 months. Experts anticipate that house prices will continue to rise, projecting a further increase of 3-5 per cent in 2026.
The Government’s housing plan aims to deliver a minimum of 300,000 new homes by 2030, but concerns are mounting over the feasibility of this target. A slowdown in the commencement of new builds is raising questions about whether the ambitious goal can be met. While new home completions increased by 20 per cent to 36,000 in 2025, the Central Bank forecasts completions will reach 37,000, 40,500, and 44,500 in 2026, 2027, and 2028 respectively – figures that fall short of the Government’s target of over 50,000 homes annually.
Brokers Ireland has described the market as “dysfunctional,” stating that aspiring homebuyers are increasingly reliant on larger mortgages. Rachel McGovern, Deputy Chief Executive of Brokers Ireland, noted that the sustained price increases are forcing buyers to capture on higher levels of debt. “This means that the two-thirds of buyers who need mortgages to purchase are taking on higher levels of debt, squeezing affordability,” she said. Despite the challenges, McGovern acknowledged that first-time buyers often perceive homeownership as a better long-term investment than renting, given the high cost of rental accommodation.
Ross Lynch, a senior mortgage advisor at NFP Ireland, observed that 2025 ended with a strengthening housing market, with the rate of house price growth accelerating in December. “Prospective sellers will be cheered by the uptick in the rate of house price growth,” Lynch stated. Yet, he cautioned that the acceleration in price growth is likely to exacerbate affordability issues for buyers, particularly first-time buyers in areas with high demand and limited supply.
