House prices could rise as much as 8% in 2025 following strong growth last year.

According to the latest residential market review and outlook from property advisors DNG, second-hand house prices in Dublin increased by 9.6% in 2024. 

The strongest rate of growth was in the Mid-West followed by the West, South East and Midlands regions which all saw average prices increase by 8.7%. 

DNG Head of Research & Business Development Paul Murgatroyd said further falls in interest rates and a strong economy point toward another year of soaring house prices. 

“We think price appreciation will continue across the country,” he said. 

“We’re forecasting mid single digit rises - so somewhere in the region 5% to 8%.

“Probably a shade under what the results were for 2024.” 

An apartment building under construction in Palmerstown, Dublin. Image: noel bennett / Alamy

In 2023, 32,548 new homes were built in Ireland. 

The figures for 2024 have not yet been published but Mr Murgatroyd said far more will have to be built to curtail surging prices. 

“Demand is probably going to strengthen more with interest rates likely to come down again and the positive economic backdrop behind the market,” he said. 

“The problem is still the lack of supply in the market at the present time. 

“New output is increasing slowly as we know it does because it takes time to build new units.” 

During the General Election, Fine Gael promised to build 303,000 new homes over the course of the next Dáil.

Main image: Houses in Dublin. Picture by: PA Wire/PA Images