The cost of apartments is rising faster than houses for the first time ever as people try to enter the property ladder. 

The latest IPAV report shows property prices are up over 5% in the first six months of the year, with apartments leading the way. 

The four highest in Ireland increases were all for apartments - Westmeath was up 14.44%, Offaly increased by 13%, Donegal was up 12.69% and Kilkenny 12.33%. 

Prices have been on an upward trajectory since the third quarter of 2023 with overall prices for two-bedroom apartments and three and four-bedroom houses in the first six months of 2024 up over 5% on those of the latter half of 2023 and over 8% in the year. 

Buying an apartment

IPAV Chief Executive Pat Davitt said the report “marks a change” in what people want to buy. 

“People are looking at getting on the property ladder,” he said. 

“For people who are getting married and maybe having no children or one child, a two-bedroom is an ideal starter home for them. 

“At least they're on the property ladder and they don’t have to rent anymore. 

“It appears nowadays people who can’t get on the property ladder the traditional three-bedroom house way are looking at [apartments].” 

File photo of apartments in Dublin, 06-08-2021. Image: Sam Boal/RollingNews

Despite the increased price of an apartment in Ireland, Mr Davitt said the prices of buying an apartment still seemed to be “reasonable”. 

“It’s reasonable enough for people to be able to get and buy and live there for a couple of years if they so need it.” 

The report also found the scarcity of housing is exacerbating challenges for both buyers and sellers. 

Many potential sellers are hesitant to put their properties on the market due to the difficulty in securing an alternative home. 

The lack of new homes has led to 67% of first-time buyers purchasing second-hand properties in 2023 and many more all over Ireland buying apartments as they are the cheapest and most affordable, according to IPAV. 

Additional reporting by Joe Caulfield.