Over the past number of years, Ireland’s residential property market has been defined by two clear characteristics: strong demand and limited supply. These forces have driven steady price growth and competitive bidding across much of the country.
As we move through the early months of 2026, however, the market appears to be entering a more measured phase. The most recent national data, combined with what we are seeing on the ground at Forbes Property, suggests that while demand remains strong, the pace of price growth is beginning to moderate after several years of significant increases. This is not a sign of weakness in the market. Rather, it reflects a natural period of stabilisation following a prolonged cycle of growth. For buyers, sellers, and investors alike, understanding this shift is essential.
The Market Is Stabilising. Not Slowing
The latest national data indicates that annual asking price inflation finished 2025 at approximately 5.4%. While this remains a solid rate of growth, it represents a noticeable slowdown compared to the stronger increases recorded earlier in the cycle. From a market perspective, this is a healthy development. Property markets rarely sustain rapid price growth indefinitely, and a moderation in the pace of increases helps create a more balanced and sustainable environment. In practical terms, what this means is that the dramatic price jumps experienced in some areas during 2023 and 2024 are becoming less common. Instead, values are increasingly moving in line with broader economic fundamentals such as wage growth and borrowing capacity.
For many buyers, this shift provides a welcome opportunity to approach the market with slightly greater confidence and clarity. However, the underlying fundamentals of the Irish housing market remain unchanged.
Supply Remains the Defining Issue
While the pace of price growth may be moderating, the core challenge facing the Irish housing market continues to be the availability of homes for sale. At the end of 2025, the total number of properties listed for sale nationally remained relatively low by historical standards. Even though listings have increased slightly compared with the previous year, they remain significantly below the levels typically seen before the pandemic.
For estate agents working on the ground, this is immediately visible.
At Forbes Property, we continue to see strong demand for well-presented homes in established residential locations. When a property is brought to market at the right price and presented effectively, buyer interest is often immediate. This shortage of supply continues to underpin the strength of the market. Even with slower price growth, the imbalance between supply and demand means that quality homes remain highly sought after.
Bidding Activity Remains Strong
One of the most visible characteristics of the Irish housing market in recent years has been competitive bidding. During 2025, many properties were regularly achieving prices significantly above their original asking levels. In some cases, bidding wars pushed sale prices well beyond initial expectations. More recent data suggests that while this trend remains present, it has softened slightly. The typical premium paid above asking price has reduced from the peak levels seen in mid-2025.
However, it is important to keep this in perspective.
Homes are still, on average, achieving prices above their asking levels. Competitive bidding remains a common feature of the market, particularly for homes in desirable areas or properties that are priced strategically from the outset. From our experience at Forbes Property so far in 2026, this dynamic is still very much in play. When a property generates strong interest during the first week or two of marketing, multiple bidders are often involved.
This reinforces an important lesson for sellers: correct pricing and professional marketing remain critical to achieving the best result.
Mortgage Trends Are Shaping the Market
Another factor influencing the pace of price growth is the mortgage market. In recent years, increased borrowing capacity and rising mortgage approvals helped fuel buyer demand. However, there are signs that this trend may now be stabilising. The average mortgage approval has continued to rise modestly, but not at the accelerated pace seen previously. At the same time, affordability has become a more prominent consideration for many households.
For first-time buyers in particular, the combination of higher property prices and lending rules means that careful financial planning is essential. As a result, many analysts expect house price growth in the coming years to move more closely in line with income growth rather than continuing the rapid gains experienced earlier in the decade. From our perspective, buyers entering the market today tend to be highly informed and financially disciplined. They are doing more research, evaluating multiple options, and thinking carefully about long-term value.
This represents a maturation of the market.
Construction Is Moving in the Right Direction
One of the more encouraging developments in the Irish housing sector is the continued increase in residential construction. Housing completions reached their highest level in many years during 2025, with approximately 34,000 homes completed nationwide. While this still falls short of the estimated level required to meet long-term housing demand, it represents meaningful progress. New-build developments are now playing an increasingly important role in supporting transaction volumes, particularly for first-time buyers.
However, it is important to recognise that new construction alone cannot immediately resolve the supply imbalance. The availability of existing homes for sale remains limited, partly because many homeowners are reluctant to move in a market where finding a suitable replacement property can be challenging. Until greater mobility returns to the market, supply constraints are likely to remain a defining feature of Irish housing.
The View from Forbes Property
While national data provides valuable insight, local market experience often tells the most accurate story. From our perspective at Forbes Property, the early months of 2026 reflect a market that remains active, competitive, and fundamentally healthy. Several trends stand out.
First, quality homes continue to attract strong interest, particularly in established neighbourhoods with good transport links, schools, and amenities.
Second, buyers are becoming increasingly selective. Energy efficiency, layout, and long-term value are playing a larger role in purchasing decisions.
Third, pricing strategy has never been more important. In a stabilising market, properties that are realistically priced from the outset tend to perform far better than those that enter the market with inflated expectations.
For sellers, this means working closely with an experienced agent who understands both the local market and broader economic trends.
Looking Ahead
As 2026 progresses, the Irish property market appears to be transitioning into a more balanced phase. Demand remains strong. Supply remains limited. Construction activity is increasing gradually. At the same time, price growth is becoming more measured. For buyers, this could mean slightly less intense competition than in recent years, although desirable properties will continue to attract strong interest. For sellers, the fundamentals remain highly favourable, provided that homes are priced and marketed correctly.
At Forbes Property, our role is to guide clients through these changing market conditions with clear advice, strong negotiation, and a deep understanding of the local market.
In a market that is evolving, insight and experience matter more than ever.
References:
Central Statistics Office. (2025). Residential Property Price Index. https://www.cso.ie
MyHome. (2025). MyHome property report: Q4 2025. MyHome.ie. https://www.myhome.ie/reports
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