House prices to continue rising in 2026
House prices are set to continue rising this year, according to property advisors DNG, as its latest residential market review and outlook is predicting low to mid-single digit increases.
Looking at the outlook for the year ahead, DNG says the final new housing completions total for the year 2025 will be a slight improvement on the number delivered in 2024.
But supply will have to ramp up significantly and quickly if the Government is to meet its new housing targets of 300,000 by 2030, the estate agents add.
Today's analysis forecasts prices will continue to rise this year with the majority of any increase coming in the first half of the year.
Overall, it expects prices in the capital to increase by 3-4% this year, with prices outside Dublin rising at a slightly faster single digit rate.
It says this is due to the continued lack of new homes available to purchase by private buyers, combined with robust demand underpinned by real wage growth, falling interest rates and the strong economic environment.
Commenting on the figures, DNG's Director of Research Paul Murgatroyd said: "Across Dublin there was a welcome moderation in the rate of house price inflation last year compared to 2024".
"In the 12 months to December 2024, the DNG House Price Gauge recorded annual price growth of 9.2%, but by December last, the annual rate had almost halved to 5.2%. Outside the capital, price appreciation was stronger last year at around 7.4% and a similar trend is anticipated in 2026," said Mr Murgatroyd.
At a national level, excluding Dublin, the average price of a second-hand home recorded by the National Price Gauge is now €321,603 compared to €299,429 at the end of 2024.
The results show that the average price of a resale property in Dublin now stands at €613,078 compared to €582,772 at the end of 2024.
An analysis of DNG buyers during the final three months of 2025 reveals that first-time buyers continued to dominate the second-hand market in the capital, accounting for 51% of purchases of resale homes.
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"Looking ahead, positive demographic trends, the current low interest rate environment and a solid economic backdrop all point toward another year of price inflation in the residential market," said Mr Murgatroyd.
"Whilst supply is gradually increasing, it is by no means at a level to satisfy demand in the market which means prices will continue to rise across the country," he said.
With regard to investment properties, DNG's analysis points to a worrying increase in the number of small/medium size landlords leaving the Dublin rental market in the second half of last year after the proposed rental sector reforms, due to come into effect this March, were announced.
DNG Chief Executive Keith Lowe said this will prove to be very negative for supply in the rental sector as the year progresses.
However, on the flip side, he said it will lead to a further increase in the number of properties available to purchase by owner occupiers.
"We are urging Government to reconsider the proposed rental sector changes ahead of the March implementation date, and would urge them to give serious consideration to allowing small landlords to sell one property with vacant possession per year, and to allow large landlords to sell up to nine units per annum with vacant possession, akin to the Tyrellstown Amendment enacted in 2017 to prevent mass evictions in any one development," he added.
