Irish home prices accelerate to 7.9% in May, led by inflation outside Dublin
home prices
rose at an annual rate of 7.9 per cent in May, led by properties outside of Dublin and fuelled by ongoing supply shortages and as the
European Central Bank (ECB)
continued to cut official borrowing costs.
The increase marked an uptick from a rate of 7.6 per cent recorded in April, the
Central Statistics Office (CSO)
said on Wednesday. Property prices in Dublin rose by 6.9 per cent, while those outside the capital jumped 8.7 per cent.
The median, or midpoint, price of a dwelling purchased in the 12 months to May 2025 was €370,000. The highest median price was €670,000 in Dún Laoghaire-Rathdown, while the lowest median price was €186,000 in Leitrim.
The most expensive Eircode area over the period was A94 (Blackrock, Dublin) with a median price of €770,000, while F45 (Castlerea, Roscommon) had the least expensive price of €150,000, the CSO said.
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The Government, formed in January with a strong mandate to tackle the State's housing crisis, is widely expected to fall well short of its target for 41,000 homes to be completed this year as it eyes 300,000 new homes by 2030.
The Central Bank said last week that its was 'surprised' by the lack of progress and that it now estimates that only 32,500 units to be delivered in 2025. Some 30,330 homes were built in 2024.
The European Central Bank (ECB) cut its rates for the eighth time in a year last month, leaving its key deposit rate at 2 per cent, half of where it stood in early June 2024 amid a battle against inflation.
Most economists expect the ECB to reduce borrowing costs again later this year, even if US Donald Trump's rapidly-evolving tariff policies are complicating decision-making across monetary authorities globally.
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