DAVY VIEW

Residential property prices grew strongly again in 2025, increasing by 7.5% compared to 2024. This was an unsurprising result given Ireland’s large shortfall of housing and continued strong increases in population, employment and national income. We expect a gradual deceleration in prices will take place in 2026 and 2027 as the supply of homes available for purchase increases and the shortfall of homes begins to stabilise. Transaction volumes were especially strong in December and reached close to €6bn for the month. This is a positive omen for continued increases in housing output this year, as we forecast.