House price growth slows as Dublin stabilises but regional pressures persist
Urban supply recovery begins to ease competition for buyers while shortages continue to drive prices outside cities
26 March 2026 | 📧 editor@ipropertyradio.com
House price inflation slowed in early 2026 to its lowest level in over two years, with evidence emerging that urban markets—particularly Dublin—are beginning to stabilise, according to the latest Daft.ie Sales Report.
Nationally, listed prices rose by 3.7% in the year to March, marking the slowest rate of increase since late 2023. The average price of a three-bed semi-detached home stood at €435,000 in the first quarter, with values now 42% above pre-Covid levels but still 9% below their Celtic Tiger peak.
Transaction data shows a similar trend. Prices increased by 5.6% year-on-year to March, also the weakest growth since 2023, while quarterly prices were broadly unchanged between December and March—an early indication that the market is cooling.
For home buyers, the gap between asking prices and final sale prices—a measure of competition—has narrowed to 5.8%, down from recent highs, suggesting slightly less intense bidding conditions in some areas.
However, this moderation is not uniform. A clear two-speed market is emerging, with stabilisation concentrated in cities where supply is improving, while price pressures remain elevated elsewhere.
In Dublin, annual list price growth slowed to 2.5%, with transaction prices falling slightly in the first quarter. The average listed price for a three-bed semi-detached home in the capital reached €626,000.
Across Cork, Galway, Limerick and Waterford, price growth was even more subdued at just 0.7% year-on-year, indicating a broader urban cooling trend.
By contrast, inflation remains significantly higher in regional markets. Prices rose by 5.1% in Leinster (excluding Dublin), 6.2% in Munster (outside cities), and 8.2% in Connacht-Ulster, reflecting tighter supply conditions.
Supply remains the defining factor. While there were just over 10,100 second-hand homes available nationwide in early March—up 6% on a year earlier—this is still less than half the pre-pandemic norm of more than 26,000.
The recovery in supply is most visible in Dublin, where availability has increased by 14% year-on-year and is approaching pre-Covid levels. In contrast, many rural and regional markets remain severely constrained, with availability still a fraction of historic norms.
Commenting on the findings, report author Ronan Lyons, Professor in Economics at Trinity College Dublin, said the data points to “clear signs that the housing market is cooling slightly, with inflation now at its lowest rate in over two years.”
He added that this shift reflects improving supply in urban areas, noting that “conditions [are] stabilising first in and near urban areas where supply is improving,” while shortages continue to drive stronger price increases elsewhere.
Lyons also highlighted a structural issue for buyers, warning that “Ireland’s housing market remains fundamentally undersupplied,” with the number of new homes required each year needing to “approximately double” across all tenures to restore long-term balance.
For prospective buyers, the report suggests a modest easing of competition in cities, particularly Dublin, where increased second-hand supply is beginning to reduce pressure on prices. However, outside urban centres, limited availability continues to sustain higher price growth, reinforcing affordability challenges across much of the country.
