Irish House Prices Rise 8.9% in First Three Months of 2023

The Irish property market continues to experience significant growth, with house prices rising by 8.9% in the first quarter of 2023 compared to the same period last year. This data comes from a recent report by proptech start-up Geowox, which provides insights based on sales prices rather than asking prices, offering a more accurate representation of the market. 

Despite a slight decline in the number of houses changing hands during the first quarter, the median price for a home in Ireland rose to €305,000. A total of 12,588 units were sold between January and April, representing a 3.6% decrease in transaction volume compared to the first quarter of 2022. This decline is likely attributed to the typical slowdown in market activity during the winter months, as seen in the drop from the previous quarter’s 16,881 residential units sold. Interestingly, the decrease in transaction volume did not lead to a decline in prices. Geowox’s report revealed that the national median price for a home rose by 8.9% or €25,000 in the first quarter of 2023, although the annual rate of house price inflation was slightly lower compared to the previous quarter.

Dublin, with 3,857 sales, remained the most expensive county, experiencing an 8.1% year-on-year increase in median house prices. At the same time, the number of transactions in Dublin decreased by 2.5% compared to the first quarter of 2022 and by 23% compared to the final quarter of the previous year.

In every county except Waterford, house prices witnessed a year-on-year increase. Waterford experienced a 1.8% decline in the median price of a home sold, amounting to €220,000. On the other hand, Longford saw the largest price increase over the year, reaching an impressive 23.7% by the end of April. Meanwhile, Roscommon was the least expensive county, with the median house price at €149,000, which is 51% below the national median.

The rising interest rates set by the European Central Bank have contributed to higher borrowing costs for prospective mortgage holders. As a result, mortgage demand has been dampened, as evidenced by the decline in mortgage approvals reported by the Banking and Payments Federation of Ireland. This downward pressure on demand is expected to affect transaction volumes and prices throughout 2023. However, despite these challenges, the property industry anticipates that prices will remain elevated due to ongoing supply issues.
Right now, the Irish property market continues to exhibit resilience and attractiveness, making it one of the more appealing investment locations globally and the recently announced Government supports for home builders means this is likely to continue through 2023. 

Ian Lawlor
086 3625482

Managing Director 
Lotus Investment Group