Residential House Prices on the Rise Despite New Builds Surpassing Expectations
Residential house prices in Ireland are set to rise by 4% this year, a trend outlined in a new report by Bank of Ireland. Despite an unexpected boost in home completions, estimated to potentially reach 40,000 by 2026, prices remain on an upward trajectory.
Steady Growth Amid Seasonal Softness
The Bank of Ireland report analyzes the current housing market, revealing that despite a slight decline of 0.3% in February and unchanged prices in March according to the Residential Property Price Index, steady growth is expected as the market heads into the summer peak.
MyHome asking prices rose by 1% in the first quarter of 2026 to a median of €385,000, marking a 4.7% increase from the previous year. Alongside this, the average mortgage approval amount climbed to €341,000 in March, up by 1.7%, supported by rising household incomes.
Competition and Rising Incomes Fuel Growth
Properties continue to sell at a premium, with median sale prices 6.7% above asking prices, indicating strong competition among buyers. Rising incomes are adding further pressure, contributing to price increases.
Conall Mac Coille, Group Chief Economist at Bank of Ireland, observes that initial softness in the year’s property price data is no surprise. A moderate rise in asking prices and evidence of competitive closing prices support the projection of continued growth.
Housing Market Activity and New-Build Dominance
Housing market activity shows growth, with a 6.6% increase in residential transactions by the end of March. A further 3% rise is projected between April and June. However, this growth leans heavily on new-build properties, which saw a 30% surge in transactions, contrasting with a decline in existing home sales for a fourth consecutive year.
The overall housing market, now estimated at €29 billion in transactions for 2025, depends significantly on new construction.
Housebuilding Exceeds Expectations
The homebuilding sector continues to surpass expectations, with completions reaching 38,191 by the end of March. Between January and March alone, 7,856 units were delivered, suggesting a robust capacity within the sector, potentially reaching 40,000 completions by 2026.
Some of this momentum is attributed to catching up, particularly in apartment construction, but the trend shows stronger-than-expected sector capacity.
Private Rental Market Developments
In the private rental market, there is a notable trend of small landlords exiting, potentially enhancing market liquidity. The Residential Tenancies Board data shows a 50% year-on-year rise in tenancy termination notices, reaching 7,062 in the first quarter.
Source: irishexaminer.com
