Irish House Prices to Rise 4% This Year, Bank of Ireland Predicts

Dublin, Ireland – The Irish housing market is expected to see prices rise by around 4% this year, according to analysis from Bank of Ireland (BOI). This forecast represents a moderation compared to the 7% inflation recorded in housing prices last year.

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demonstrating fierce competition among buyers into the summer

Properties have consistently sold above asking price in April and May, with median sale prices remaining 6.7% higher than initial asking prices. BOI's Chief Economist Conall McCoille noted that this fierce competition among buyers, particularly into the summer, suggests further price increases in the coming months. Asking prices on MyHome.ie rose 1% in the first quarter of 2026, reaching a median of €385,000, a 4.7% year-on-year increase.

However, rising affordability limits for borrowers and more moderate wage growth are tempering demand. Market activity is expanding, with residential transactions up 6.6% year-on-year in the first three months of 2026. BOI projects a further 3% increase in the second quarter.

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is often the case in the first quarter of the calendar year

The growth is predominantly driven by new-build properties, which saw a substantial 30% surge in transactions. In contrast, sales of existing homes have declined for a fourth consecutive year. BOI's analysis points to a structural challenge where existing homeowners are reluctant to move due to tight supply and competitive buying conditions.

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is finally scaling up

Despite these challenges, Ireland's homebuilding sector is outperforming expectations. Housing completions reached 38,191 in the year to the first quarter of 2026, with 7,856 units delivered in the first three months alone. BOI anticipates completions could reach 40,000 units in 2026, exceeding earlier projections. The bank's outlook suggests that while new housing supply is increasing, tight conditions in the second-hand market and strong first-time buyer demand will likely sustain price pressures.

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tight conditions in the second-hand market and strong first-time buyer demand mean price pressures are likely to persist