The median price of a home in Dublin has hit €500,000, as a shortage of homes continues to dog the wider market.
Data from the Central Statistics Office shows prices continuing to increase, rising by 7 per cent last year.
While the capital’s median home price topped €500,000, that was unevenly distributed around the city. Median prices in Dún Laoghaire-Rathdown now stand at €679,999 while the equivalent price in Fingal stands at €475,000.
Nationally, the median price paid for a home last year stood at €387,000. Outside Dublin the highest price was €454,000 in Co Wicklow while Donegal was the lowest at €195,000
Graphic: Paul Scott
The 7 per cent increase was down from an annual increase of 8.7 per cent in 2024 but still well ahead of average wage growth, meaning the purchasing power of buyers continues to be squeezed.
Prices in Dublin rose by 5.6 per cent while prices outside Dublin were up by 8.1 per cent when compared with December 2024.
Residential property prices of new dwellings in the fourth quarter of 2025 were 6 per cent higher than in the corresponding quarter of 2024. This compares with an annual hike in the cost of new dwellings of 5.5 per cent during the previous 12 months.
House prices overall are expected to rise by a further 3-5 per cent this year.
The Government’s revamped housing plan promises that a minimum of 300,000 new homes will be built by 2030 but a sharp slowdown in commencements has placed a question mark over that target.
While new home completions rose by 20 per cent to 36,000 last year, the Central Bank forecasts that figure will rise to 37,000, 40,500 and 44,500 in 2026, 2027 and 2028 respectively, well below the Government’s 50,000-plus target level.
Umbrella group Brokers Ireland said aspiring homebuyers are still operating in a dysfunctional market and as a result are taking on ever greater levels of debt in the form of mortgage borrowing.
The group’s deputy chief executive, Rachel McGovern, said the latest increase follows a sustained period of strong price increases.
“This means that the two-thirds of buyers who need mortgages to purchase are taking on higher levels of debt, squeezing affordability.
“First-time buyers understand very well that they are better off over the longer term in buying over renting if they can at all afford it, given very high rents, often greater than mortgage repayments,” she said.
Senior mortgage adviser at NFP Ireland Ross Lynch said the latest report showed that 2025 ended on a strong note for the Irish housing market, with the rate of house price growth increasing in the month of December.
“Prospective sellers will be cheered by the uptick in the rate of house price growth,” he said.
“However, the many aspiring housebuyers out there will be concerned by the acceleration in the rate of house price growth as it means they are likely to continue to face significant affordability issues, particularly first-time buyers in certain areas, where demand remains high and new supply is still falling short,” he said.