Acute Shortages Drive Stronger Price Growth Outside the Capital
Statement by Marian Finnegan, CEO, Sherry FitzGerald
April 22nd 2026
Sherry FitzGerald, Ireland’s largest estate agent, today welcomed the latest residential commencement figures published by the Department of Housing. With 8,408 homes started, this was more than double the same period in 2025 and above recent Q1 averages. Despite improvement, supply remains below demand, and Dublin's development concentration has led to shortages and rising prices in regional markets.
The estate agent reported a 1.3% increase in the average value of second-hand homes nationwide during the first quarter of 2026. This marks a moderation compared to the 2.3% increase recorded in the same period in 2025.
On an annual basis, average residential property values rose by 5.8%, easing from the 7.5% growth recorded at the same time last year.
Price growth remained notably stronger outside the capital. The average value of second-hand homes in regional markets increased by 1.8% in the first quarter and by 8.0% over the past twelve months. In contrast, Dublin experienced more moderate inflation, with prices rising by 0.8% in the quarter and 4.0% year-on-year.
Commenting on the findings, Marian Finnegan said: “Price growth outside of Dublin continues to outpace that of the Capital, reflecting trends observed throughout 2025. This divergence underscores the acute shortages of second-hand housing supply in rural and regional Ireland. Despite ongoing global challenges, prices continue to rise, driven by persistent imbalances between supply and demand.”
In 2024 and 2025, Dublin accounted for 35% of all residential units commenced. By comparison, approximately 29% of the estimated 56,200 units required annually are needed in Dublin. This suggests that regions outside of the capital will continue to see stronger price inflation in the short term.
Transaction data for 2025 indicates that household buyers accounted for 50,461 residential purchases, based on stamp duty records, representing a 3.3% increase on the previous year.
The new homes market experienced strong growth, with transactions increasing by 18.2% year-on-year. Household buyers completed 12,125 new home purchases—the highest level recorded since data collection began in 2010. This follows the delivery of 36,264 new homes in 2025, a 20.4% increase compared to 2024.
The Greater Dublin Area (Dublin, Kildare, Meath, and Wicklow) remained the primary hub for new housing activity, accounting for 51% of all new home transactions. Cork represented a further 15% of activity in this segment.
Activity in the second-hand market remained broadly stable, with transactions declining marginally by 0.7% to 38,336. However, supply constraints persist. Research conducted by Sherry FitzGerald earlier this year found that just 0.7% of Ireland’s second-hand housing stock was available for sale in January 2026—well below the level required for a properly functioning market.
The trend of landlords exiting the market, evident for over a decade, continued into the first quarter of 2026. Data from the Sherry FitzGerald Group shows that investors accounted for just 9% of second-hand home buyers during the period, while 32% of vendors were investors selling their properties. There is currently no evidence to suggest that recent changes to rental legislation have accelerated this trend.
Concluding, Marian Finnegan said: “While there were encouraging improvements in planning permissions and housing completions last year, sustained progress in these areas will be essential to meaningfully increase housing supply. At the same time, geopolitical developments remain a key risk, with the potential to impact construction costs, interest rates, and overall project viability, which could affect housing delivery in the short to medium term.”
ENDS
For further information, please contact:
Jill O’Neill
Director of Marketing & PR
Sherry FitzGerald Group
Tel: 01 2376 6324 / 086 252 3277
