Ireland Housing: Price Growth Slows, Urban Areas Cool Faster – Daft.ie Report

Ireland’s housing market is undergoing a significant shift, moving away from the “acute overheating” seen in the wake of the Covid-19 pandemic, according to a report released Thursday by property website Daft.ie. While prices continue to rise, the pace of increase has slowed considerably, signaling a potential stabilization, particularly in urban areas like Dublin.

The Daft.ie report, covering the first three months of 2026, indicates that listed home prices increased by 0.6% between December and March. Over the past 12 months, prices have risen by 3.7%, marking the slowest rate of increase since late 2023. Transaction prices nationally were described as “stable” during the same period, with an annual increase of 5.6% – also the slowest rate since late 2023.

Urban vs. Rural Divide

The cooling effect isn’t uniform across the country. A more nuanced pattern is emerging, with urban markets experiencing greater stabilization than rural areas. In Dublin, listed house prices increased by 2.5% year-on-year to March, a significant drop from the 6.3% rate observed in the 12 months to March 2025. Early figures suggest transaction prices in Dublin actually fell by 1.1% in the first quarter of 2026, representing a second consecutive quarterly decline.

This trend extends to other major cities. Average prices in the four largest urban centers remained unchanged between December and March and increased by only 0.7% over the past year. Outside of these cities, however, the slowdown is less pronounced. In Connacht and Ulster, excluding Galway city, listed prices increased by 8.2% over the 12 months to March, mirroring the growth rates seen in 2025 and 2024.

According to Ronan Lyons, professor of economics at Trinity College Dublin and author of the Daft report, this divergence is linked to the type of properties being sold. Dublin and other cities are largely reliant on second-hand homes, and the availability of these properties has increased by 14% over the past year. Outside urban areas, however, “supply constraints remain far more binding,” particularly where second-hand availability remains significantly below pre-pandemic levels.

Supply and New Construction

While increased delivery of new homes is providing some relief, Lyons notes that in many parts of the country, limited new supply coupled with subdued second-hand activity continues to drive price inflation. This creates a situation where the housing market is “adjusting unevenly to changing supply conditions.”

The challenges in increasing supply are underscored by recent data showing a significant decline in new housing starts. Reports indicate that new housing starts fell by more than three-quarters last year, with particularly sharp decreases in Fingal and South Dublin County Council areas. This slowdown in construction activity could exacerbate existing supply issues and potentially hinder further stabilization of the market.

The average price nationwide for a three-bed, semi-detached home stood at €435,000 at the end of last year. While the market is showing signs of cooling, it remains significantly above pre-pandemic levels. The coming months will be crucial in determining whether the current trend of stabilization continues, and whether the supply-demand imbalance can be addressed to create a more sustainable housing market in Ireland.