House prices in Ireland have risen by 11.6% in Q1 2025 compared to a year previously according to the Daft.ie House Price Report.

Only once in the decade since the Central Bank introduced its mortgage rules has house price inflation been higher, when it hit its peak of the 2017/2018 spike in prices and then only just at 11.7%. Comparatively just two years ago housing prices rose by only 2.9% year-on year in the Q1 2023.

Ronan Lyons, associate professor in economics Trinity College Dublin, said in the report: “Mortgage debt is, of course, directly related to housing prices. But housing prices vary far more across the country than incomes do. Thus, the Central Bank’s rules effectively encouraged the reshuffling of demand for homes away from employment centres and down the motorway network.

“This regulatory change was important, but covid19 marked a dramatic acceleration in those trends. In the last decade, the like-for-like price of a home in Dublin has increased by about 50%. But elsewhere in the country it has increased by closer to 100%.”

Supply is cited as a factor in the rises as in late 2022, there were almost 4,900 second-hand homes on the market, but by the start of 2025, that had fallen to just over 2,500.