What are the Current Trends in House Prices and Rental Demand

As we approach the end of 2025, house prices and rental demand across Dublin and Naas reveal a compelling narrative of resilience, competition, and shifting preferences. Backed by recent data, both cities show continued strength in property values and rental appeal, albeit with nuanced differences shaped by geography, infrastructure, and lifestyle appeal.

This article explores what’s really happening in these markets—and what it means for homeowners, investors, and estate agents navigating the ever-changing Irish property landscape.

Are House Prices Still Rising in Dublin in 2025?

Yes, Dublin’s house prices are still increasing in 2025, although at a more moderate pace than in previous years. Annual price growth is currently at 5.2% as of August, according to official figures, reflecting a market that remains strong despite higher borrowing costs.

This cooling from previous double-digit rises is largely due to rising interest rates and stricter mortgage lending rules. Yet, demand remains robust in key city zones, making Dublin a continued hotspot for sellers.

Housing Market Snapshot:

• Dublin City tops the growth chart with 7.2% year-on-year increases.
• Dún Laoghaire-Rathdown, on the other hand, saw growth slow to 3.3%.

Estate agents in Dublin report high interest in well-maintained second-hand homes, especially those near amenities, quality schools, and transport corridors like the Luas or DART.

Why Are House Prices Surging in Naas?

House prices in Naas are surging because of its commuter appeal, growing amenities, and new infrastructure plans. The town offers value compared to Dublin and is benefiting from the spillover of city demand.

The average property in Naas is now commanding increased attention from both investors and first-time buyers. With properties selling quickly, often after competitive bidding, Naas is firmly on the radar for those looking to balance affordability with access to the capital.

What’s driving House Price Growth:

• Commuter accessibility: Improved road and rail connectivity.
• Market competition: Limited stock and high demand.
• Planned investment: New schools, roads, and retail developments.

Buyers are increasingly favouring Naas for its suburban lifestyle, green spaces, and strong community spirit—without the premium Dublin prices.

Is Rental Demand Still Rising in Dublin?

Yes, rental demand remains extremely high in Dublin, especially in well-connected neighbourhoods. Despite new supply entering the market, it hasn’t been enough to meet growing demand.

According to local estate agents, competition is particularly fierce in areas served by high-frequency public transport. The rise of short-term lets and a shrinking pool of private landlords have further tightened supply.

Rental Trends in 2025:

• Increasing popularity of co-living and serviced apartments.
• Rise in short-term rentals in zones like Dublin 15.
• Limited long-term housing options despite population growth.

With many landlords exiting the market due to tax and regulation pressures, rental costs continue to climb, and tenants face limited options. Young professionals and students are increasingly turning to flexible living arrangements.

Why Is Rental Demand Increasing in Naas?

Naas is seeing a sharp rise in rental demand due to its position as a commuter hub with a lower cost of living. It has become an attractive alternative to Dublin for renters looking for space, affordability, and convenience.

Tenants who previously rented in the city are relocating to Naas, enticed by its schools, retail options, and access to nature. This demographic shift is putting pressure on the local rental market.

What’s happening with Rental Demand:

• Rental turnover is increasing year-on-year.
• Young families and professionals are leading the trend.
• Properties are being let faster, often with multiple applicants.

Estate agents in Naas are advising landlords to invest in quality fit-outs and competitive pricing to attract high-calibre tenants quickly in this fast-moving market.

Are Property Prices Expected to Drop in Dublin?

No, house prices in Dublin are not expected to drop significantly in the short term. While growth has stabilised, the fundamentals—demand, limited supply, and strong employment—continue to support prices.

Current market indicators suggest continued resilience. Though more moderate than in boom years, price rises are still present and show few signs of reversing without a dramatic shift in economic or housing policy.

According to the CSO, Dublin home values rose 5.2% from August 2024 to August 2025, with signs pointing to steady growth through early 2026.

What Is the 2025 Outlook for the Dublin Property Market?

The outlook for Dublin’s property market in 2025 is stable but still competitive. Limited housing stock and continued inward migration are sustaining demand.

Estate agents anticipate that areas with strong transport links, upgraded public services, and proximity to employment hubs will remain highly sought-after. For sellers, this translates to healthy valuations and quicker sales.

New construction activity is increasing, but planning bottlenecks and cost constraints mean supply will take time to catch up.

Why Are Irish Landlords Leaving the Market?

Many Irish landlords are exiting the market due to increased tax burdens, tighter regulations, and rising maintenance and mortgage costs. Budget changes and rental caps have also made buy-to-let less appealing.

This trend is particularly noticeable in Dublin, where the cost of compliance and refurbishment has surged. As older landlords retire or sell up, fewer private rentals are available, intensifying demand.

Estate agents report that some landlords are transitioning to short-term rentals or selling altogether—driving a shift in the rental landscape and affecting tenant choice.

Is Now a Good Time to Sell in Dublin or Naas?

Yes, 2025 is considered a strong time to sell, particularly in high-demand areas like Dublin City and growing commuter towns such as Naas.

With low inventory and consistent buyer interest, estate agents are seeing fast-moving sales and competitive bidding. If you’re a homeowner looking to upsize, downsize, or relocate, market timing is in your favour.

Properties with updated interiors, BER certificates, and desirable locations are especially appealing to modern buyers.

Thinking of making a move in Dublin or Naas?

Speak with Howley Souhan, trusted estate agents with deep local knowledge, tailored marketing strategies, and real-time market insight.

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