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8th January 2025
09:47am GMT
This follows a year of significant growth in the housing market, according to a recent residential market review and forecast by DNG.
In 2024, second-hand house prices in Dublin surged by 9.6%, while other areas also saw notable growth.
The Mid-West led the way with the highest rate of increases, followed by the West, South East and Midlands, all recording average hikes of 8.7%.
Paul Murgatroyd, DNG’s Head of Research and Business Development, spoke of the key factors contributing to the anticipated growth in 2025.
He said that falling interest rates and a resilient economy will be two of the main driving factors.
“We expect price appreciation to persist across the country,” he said.
“Our forecast suggests mid single-digit increases, likely in the range of 5% to 8%. This would be slightly below the levels seen in 2024.”
While the demand for housing remains high, supply issues are adding to the price pressures being seen.
In 2023, 32,548 new homes were built across Ireland and although final figures for 2024 are yet to be released. Murgatroyd said significantly higher output is needed to address the ongoing housing shortage.
“Demand is set to strengthen further, bolstered by declining interest rates and a solid economic backdrop. The persistent issue, however, is the lack of sufficient supply in the market.
“While the pace of new construction is increasing, the process is inherently slow.”
In response to the housing crisis, Fine Gael promised during the General Election to deliver 303,000 new homes over the next Dail term.
However, with demand continuing to outstrip supply, the challenge of balancing the market remaining significant.
As Ireland heads into another difficult year of surging house prices, market experts are stressing the need for accelerated housing development to alleviate the pressure.
