Why Dublin Property Demand Is Still Booming in 2025 – Despite the Housing Shortage
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by Colene Faulkner
- March 16, 2025
- Letting Agents, Property Sales, Real Estate
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As Ireland’s housing crisis deepens, there’s a perplexing truth that continues to define the Dublin market: demand remains robust, even as supply flatlines. For all the talk of affordability constraints, stalled planning applications, and regulatory roadblocks, the property sector in the capital—both for sale and rent—continues to hum with activity.
Despite limited stock and rising estate agent charges, local estate agents in Dublin and Naas are seeing consistent buyer interest, brisk sales, and queues for rental viewings. But why, in a housing system so clearly under strain, is demand showing no sign of waning?
As of March 2025, the latest figures help tell the story—and leading estate agents and property managers are weighing in with their front-line experience.
Ireland’s Housing Market by the Numbers – March 2025
| Indicator | Latest Figure | Source |
| Dublin house price growth (YoY) | +3.9% (Jan 2025) | CSO |
| Average Dublin rent | €2,400+ (Q1 estimate) | Daft.ie |
| New dwellings completed (2024) | 32,949 | CSO |
| Institutional investment (Q4 2024) | €580 million | BNP Paribas |
| Average new mortgage rate | 3.92% (Jan 2025) | Central Bank of Ireland |
Behind the Numbers: Demand Shows No Sign of Cooling
According to the CSO, residential property prices across Ireland rose by 5.2% in the year to January 2025, with Dublin prices up 3.9%. These figures follow the ECB’s rate cuts in late 2024, which have since stabilised, easing pressure on mortgage holders and boosting buyer sentiment.
Despite the improvement in lending conditions, supply has failed to keep pace. Just 32,949 new homes were completed in 2024, narrowly meeting the Government’s Housing for All target of 33,000—yet falling far short of the 50,000+ units experts say are needed annually to meet demand in the long term.
At the same time, Daft.ie reports record-breaking rents in Dublin, now exceeding €2,400 per month on average. On 1 March 2025, fewer than 1,500 homes were available to rent nationwide, continuing what the platform calls “an unprecedented scarcity” of lettings stock.
What’s Driving Demand in a Starved Market?
1. Population Growth and Migration
Ireland’s population continues to grow, with Dublin absorbing the lion’s share due to employment opportunities, infrastructure, and education. Immigration remains strong, particularly among young professionals and returning Irish expats.
2. The Lock-In Effect
Existing homeowners, especially those on low fixed-rate mortgages, are reluctant to move. With limited stock and rising estate agent prices, many are choosing to stay put rather than trade up or down, further tightening supply.
3. Renters Transitioning to Buyers
With rent continuing to climb, long-term renters are making the jump to ownership—if they can. As one Dublin 7 letting agent noted, “We’re seeing tenants coming to us fed up of rent hikes. If they have the deposit and pre-approval, they want out of the rental cycle.”
4. Foreign Institutional Investment
Arguably the most controversial factor sustaining demand: international investment funds. These firms continue to purchase entire blocks of newly built apartments in urban areas, particularly Dublin and parts of South Kildare.
According to BNP Paribas Real Estate, €580 million was spent on residential property investments in Q4 2024, a majority of which involved forward purchases by foreign-backed REITs. These units are rarely released to the open market and are instead funnelled into build-to-rent portfolios.
Insights from the Ground: What Estate Agents Are Seeing
In both Dublin and Naas, agents at Howley Souhan confirm that activity remains strong. “Family homes in areas like Dun Laoghaire or Dublin 6 are still going to competitive bidding,” says one senior negotiator. “Buyers are being more cautious, but they’re still out there—and they’re prepared.”
In Naas, more first-time buyers are entering the market, drawn by better value and improved rail and motorway links. “There’s a strong shift to quality,” says a Naas estate agent. “Homes with BER A ratings and good broadband are selling faster than ever.”
On the rental side, the picture is tighter still. Letting agents near me report that listings attract dozens of applicants within hours. Even modest one-beds are receiving multiple offers, often from tenants with strong references and above-average budgets.
Institutional Buyers: Still Reshaping the Market in 2025
Despite efforts to slow their dominance, foreign investment firms continue to play an outsized role in housing supply—particularly in Dublin. Government measures, including higher stamp duty on bulk purchases, have only mildly curbed activity.
The issue, say many property agents in Dublin, is not that institutional buyers exist, but that they’re often prioritised in planning and sales strategies by developers. “Until we have a planning system that properly balances investor interest with individual buyers,” says one estate agent in Dun Laoghaire, “we’re going to see more and more apartment stock disappear into long-term rentals before the public even gets a look in.”
Advice for Buyers, Sellers, and Landlords in 2025
For Buyers:
- Get mortgage approval early—competition is still fierce, especially for three-bed homes and anything with outdoor space.
- Watch interest rate trends—the 3.92% average rate may ease further if the ECB cuts again mid-year.
- Work with a buyers agent or property agents Dublin-based for access to pre-market opportunities.
For Sellers:
- Price realistically—demand is high, but buyers are now factoring in long-term costs and rate movements.
- Use local estate agents who understand specific area demand. A strong listing strategy is key.
- Understand estate agent charges up front—marketing, viewings, and negotiation matter more than ever.
For Landlords:
- Retain good tenants—it’s a landlord’s market, but compliance matters.
- Consider using a property management company in Dublin or Naas to stay on top of legal and maintenance responsibilities.
- Review your yield—rents are high, but so are estate agents’ costs and taxes. Know your margins.
Conclusion: No Crash, No Calm – Just a Changing Market
In a market so short on homes yet so full of demand, there are no simple solutions. But the reality in March 2025 is clear: Dublin’s property market remains highly active, highly competitive, and driven by deeper economic and demographic forces that won’t disappear overnight.
What’s required now is not speculation, but strategy—from buyers, landlords, and developers alike.
Talk to the Experts: Howley Souhan – Dublin & Naas Estate Agents You Can Trust
Navigating this market requires more than listings and luck. With offices in Dublin and Naas, Howley Souhan offers grounded, practical advice informed by years of experience in a changing property landscape.
Thinking of buying, selling, or letting? Contact Howley Souhan today for expert guidance tailored to your property goals.
