23rd February 2025
House Price Increases Tame in Latter Half of 2025
New Rent Rules Expected to Impact 2026
The final six months of 2025 saw a notable slowing in the rate of increase in residential property prices, easing to 2.87% from 5.05% in the first half of the year, bringing the overall annual figure for the year to 7.92%, according to the latest IPAV Residential Property Price Barometer, which records sale prices achieved by auctioneers for three and four-bedroom homes and two-bedroom apartments.
Latest data shows that while none of the 41 locations captured in the barometer were in negative territory compared with the first half of 2025, the level of increases across the three property types were remarkably close, with none exceeding 5.83%.
Unlike in previous data sets, there were no discernible changes in patterns across locations or property types. The top ten prices across the three categories in the final six months ranged from 3.85% to 5.83%.
Genevieve McGuirk, IPAV Chief Executive said auctioneers report that properties are taking a little longer to sell. “This is likely to reflect caution arising from the combined effects of continuing price increases since the covid pandemic in 2020 of, on average, about 45%, and latterly, increasing geopolitical tensions.”
A recent Red C and Gallup International survey of 60 countries found that when asked about the world’s prospects for the year ahead compared with last, Ireland featured among the ten most pessimistic. “A manifestation, perhaps, of a greater closeness to Boston rather than Berlin,” she said.
Ms McGuirk said that without doubt landlords are exiting the market in advance of new rent legislation due to take effect on March 1st, with some agents reporting that up to 60% of sales are arising as a result of the new rules.
“The fact that the legislative detail as set out in the Bill is more onerous than initially anticipated, for example, placing extremely strict conditions on smaller landlords wishing to end tenancies in order to sell their properties, could be problematic. This may have unintended consequences,” she warned.
While landlord sales increase supply in the short term, the longer-term implications for the second-hand market are concerning, she said. A sustained reduction in rental stock may further limit options for tenants, while a weaker second-hand market could reduce choice and flexibility for buyers, including existing homeowners wishing to right-size.
She said that while Government is investing in new builds agents report many locations are lacking such development, including parts of the commuter belt.
“This is potentially very worrying; we need a second-hand market, including in Dublin. A healthy second-hand market is essential, not least because it often provides more affordable options than new builds.”
She said given the prolonged nature of the housing crisis, and greater economic uncertainty, time is of the essence.
“We need to see the Government’s housing plan delivering at pace,” she said. “With supply pressures continuing there is likely to be ongoing upward pressure on prices, particularly for quality, well-located properties. And anecdotal evidence would suggest price levels very much holding up so far in 2026.”
Ends.