Ireland’s national Residential Property Price Index (RPPI) rose by 7.9% in the 12 months to May 2025, according to new figures from the CSO — an increase from 7.6% in April.

The latest data highlights the ongoing pressure in the housing market, driven by strong demand and limited supply.

Property prices in Dublin grew by 6.9% annually, while prices outside the capital surged by 8.7%.

The median price for a home nationwide in the year to May was €370,000, with the most expensive area being Dún Laoghaire-Rathdown (€670,000) and the least expensive, Leitrim (€186,000).

Blackrock (A94) recorded the highest median price at €770,000, while Castlerea (F45) had the lowest at €150,000.

In May alone, 3,824 property transactions were filed with the Revenue Commissioners, a 4.3% drop compared to May 2024.

These comprised 2,913 existing homes and 911 new builds, totalling €1.6bn in value. First-time buyers accounted for 1,388 purchases.

Niall Corkery, CSO statistician, noted the fastest house price growth was in the Border region (up 11.1%), while Dublin’s Fingal led growth within the capital (up 9.3%).

On the ground, estate agents are reporting brisk activity.

Helen O’Keeffe of Auctioneera said, “Homes in good condition and priced appropriately are going sale agreed quickly, often within two weeks.

"Demand from first-time buyers remains especially strong.”

However, concerns persist around affordability and supply.

Ian Lawlor of Roundtower Capital warned, “Planning delays and infrastructure constraints are still holding back delivery.

"The Planning and Development Bill 2025 is urgently needed to unlock tens of thousands of homes currently stuck in the system.”

Trevor Grant, chairperson of Irish Mortgage Advisors, highlighted the growing pressure on first-time buyers.

“Prices are outpacing income growth. The median mortgage for a first-time buyer is now close to €300,000. While rates have eased slightly, competition for homes is fierce, particularly in urban areas.”

Experts agree that increasing housing output remains the key challenge.

Despite record mortgage approvals, buyer demand continues to outstrip available supply.

With completions still far below what’s needed, stakeholders are calling for faster planning reform, improved infrastructure delivery, and stronger government action to address the root causes of Ireland’s housing crisis.