Dublin Property Market 2026: Strong increase in property values and still undersupplied.
2025 marked another remarkable—if turbulent—year for the Dublin property market. Demand remained strong, prices continued their upward march, and the structural issues underpinning both the sales and rental sectors only deepened.
Despite global headwinds—including renewed geopolitical tensions, trade tariffs, and the return of a Trump presidency—buyer sentiment held firm. The Irish economy, resilient as ever, underpinned continued activity in both owner-occupier and international buyer segments. But it wasn’t a one-size-fits-all story. In fact, market behaviour diverged sharply depending on price bracket, buyer profile, and property type.
Sales Market Highlights
Price Growth with Caveats
Average property values across our key Dublin markets rose by 8% in 2025—slightly ahead of the 7% increase in 2024. However, the topline figure masks significant nuance.
- Upper-end homes, particularly in South Dublin, showed signs of fatigue—especially those requiring major renovation.
- Apartments, especially in Dublin 8 saw values rising 10% year-on-year, driven by first-time buyers.
Across all segments, bidding wars remained the norm, particularly in the sub-€500,000 range. Properties in this bracket sold for 10% above asking, up from 8% in 2024.
First-Time Buyers To The Fore
Owner-occupiers dominated activity, making up 88% of buyers. Of those, 76% were first-time buyers—a sharp increase from 66% in 2024. The average buyer age rose to 41, reflecting delayed purchasing timelines, often bridged by family assistance or prolonged saving.
Investor activity collapsed—falling to just 12% of buyers, the lowest level we have ever recorded. Regulatory constraints and a hostile policy environment have decisively pushed many private landlords out of the market.
📉 Investor demand is no longer just soft—it’s structurally suppressed.
Cash Buyers and Global Capital
Cash funded buyers remained very active, accounting for 42% of transactions. Most of these buyers were leveraging proceeds from prior property sales, inheritance, or business exits.
International interest was strong, with 40% of buyers being non-Irish. Notably, American demand surged—many citing political motivations and the desire for a European relocation.
Top Performing Postcodes
- Dublin 6 topped the chart with the highest average selling price at €865,944 (€797 per sq. ft.).
- It also posted the fastest average selling time: just 4.1 weeks.
Across all sales:
- Average price: €629,460 (+3% YoY)
- Average time to sell: 6.7 weeks
- Fall-through rate: 14% (unchanged YoY, though Q3 saw a spike to 25%)
That Q3 spike was driven by increased buyer uncertainty around what impact tariffs might have on multinational employment, as well as cost underestimation around property renovations.
Lettings Market in Crisis
The Landlord Exodus Intensifies
The rental market faced continued contraction in 2025, driven by the accelerated exit of small landlords.
- 62% of sellers were investors offloading buy-to-let properties—only slightly down from 67% in 2024.
- This translated to a 27% drop in our rental transactions, highlighting how dwindling stock is choking market liquidity.
Despite years of warnings, regulatory pressures—including rent caps, tax inefficiencies, and policy hostility—are actively dismantling the private rental sector.
Rent Inflation Persists
- Average rent: €2,855/month (+4% YoY)
- Demand remained highest for modern apartments with on-site amenities and turn-key family homes.
- Corporate relocations, particularly from the U.S. and Europe, fuelled strong uptake in premium stock.
Who Are Our Tenants?
- 38% worked in tech (down from 43% in 2024 and 60% in 2022)
- 20% worked in financial services
- Average tenant salary: €76,000 (+5% YoY)
This shift reflects Ireland’s growing remote work culture—now the second-highest in Europe after Finland—reducing the proportion of renters tied to Dublin-based office roles.
Outlook for 2026
Looking ahead, we expect:
- More moderate price growth (4% to 5%)across most segments, driven primarily by first-time buyers and sustained demand for turn-key homes.
- Continued pressure on the sub-€500,000 market, with affordability remaining a critical constraint.
- A pick up in activity at the upper end after asking price adjusting
- A never ending crisis in the rental market, with further landlord exits and stalled apartment construction ensuring further rent inflation unless policy shifts occur.
Without serious intervention, the supply-demand imbalance will only worsen—and with it, the broader affordability crisis in the capital.
Final Word
2025 was a year defined by divergence. Resilient buyer demand and institutional strength continued to support transaction volumes, but the rental market suffered from active disinvestment. The government’s policy stance remains a central risk. Unless incentives change and private capital is welcomed back into the housing market, we’ll be saying the same thing this time next year—only louder.
If you’re planning to buy, sell, or invest in 2026, the difference between a smart move and an expensive mistake will come down to planning, timing, and having the right strategy. I can help you with all three.
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