Property prices rise 7% as Midlands surge and regional affordability gap deepens
Annual growth persists despite subdued sales volumes and rising new-build activity
18 March 2026 | 📧 editor@ipropertyradio.com
Residential property prices increased by 7.0% in the year to January 2026, according to the latest data from the Central Statistics Office (CSO), signalling continued upward pressure in the housing market despite a slowdown in transaction activity.
The latest Residential Property Price Index shows a marginal acceleration from the 6.9% annual growth recorded in December, with price growth continuing to outpace supply improvements and reinforcing affordability pressures across both urban and regional markets.
Growth outside Dublin continues to outstrip the capital, with prices rising by 7.7% compared to 6.1% in Dublin. This divergence reflects sustained demand in regional markets, particularly in areas influenced by population movement, hybrid working and relative price accessibility.
Within Dublin, house price growth stood at 5.6%, while apartment prices increased by 7.8%. Dublin City recorded the strongest house price growth at 8.0%, while Fingal saw more modest increases of 3.8%.
Outside the capital, the data points to sharper regional variation. House prices rose by 7.3% overall, but the Midlands recorded a significant 15.9% increase, the highest in the State. Border counties also saw strong growth at 10.2%, while the Mid-West recorded a lower increase of 5.6%.
Apartment price inflation remains a notable trend, rising by 12.3% outside Dublin, indicating sustained demand in urban centres and commuter locations where supply constraints persist.
The median price of a dwelling reached €389,986 in the 12 months to January 2026. Dublin remains the most expensive region with a median price of €500,000, rising to €680,000 in Dún Laoghaire-Rathdown. In contrast, Donegal recorded the lowest median price at €195,000, highlighting the scale of regional affordability differences.
At Eircode level, disparities are more pronounced. Blackrock (A94) recorded the highest median price at €840,000, while Castlerea (F45) in Roscommon recorded the lowest at €153,000.
Despite rising prices, transaction volumes remain subdued. A total of 3,781 dwelling purchases were recorded in January 2026, representing a marginal annual decline of 0.5%. This is significantly lower than December 2025 levels, reflecting seasonal factors and constrained supply.
The total value of transactions reached €1.66 billion in January, a 2.5% increase year-on-year. Existing homes accounted for the majority of activity, with 2,686 transactions valued at €1.14 billion, while new dwellings accounted for 1,095 purchases with a combined value of €516.9 million. Notably, new dwelling transactions increased by over 12% year-on-year, indicating some improvement in delivery, albeit from a low base.
First-time buyer activity showed modest growth, with 1,566 purchases recorded in January, up 4.1% on the same month last year. Over the 12-month period, first-time buyers accounted for 39% of market purchases, while former owner-occupiers represented just over half of all transactions.
The CSO also noted that property prices have now surpassed peak levels from the pre-2008 market cycle. Nationally, prices are 25.3% above their 2007 peak, with stronger recovery and growth evident outside Dublin, where prices are now 27.5% above peak levels.
While price growth remains steady, the combination of rising values, uneven regional performance and limited transaction volumes continues to point to structural supply constraints rather than demand-driven overheating.
