Price of second-hand homes grew by 6.8% in 2025 as 'housing emergency persists'

Sherry Fitzgerald report highlights imbalance between supply and demand

Wed, 31 Dec, 2025 - 00:05

Martin Claffey

The average value of second-hand homes nationwide grew by 6.8% in 2025 – slower than 2024 but continuing to highlight the “imbalance between housing supply and demand”, a new report shows.

In its final housing report of the year, Sherry Fitzgerald said on Wednesday that while the average price for second-hand homes in Ireland had slowed from 7.2% in 2024, price inflation remains resilient.

In Dublin, residential values rose by 5.8% over the year, compared with annual growth of 7.1% in 2024. Outside the capital, prices increased by an average of 8%, with particularly strong growth recorded in the border (11.1%) and South-East (9.4%).

“The continued price growth recorded in 2025 highlights the persistent imbalance between housing supply and demand. The notably stronger growth outside Dublin reinforces the need for the delivery of homes across all tenures and in all regions of the country,” said Sherry FitzGerald chief executive Marian Finnegan.

In the first nine months of 2025, approximately 35,100 housing transactions were completed, up 3.4% increase compared with the same period in 2024. New home sales rose by 19.3%, equating to an additional 1,271 transactions year-on-year. Second-hand home sales remained broadly stable, with 27,256 transactions recorded, a marginal decline of 0.4% compared with 2024.

Investors accounted for just 8% of Sherry FitzGerald’s second-hand home sales during the year, the lowest proportion recorded since 2011. At the same time, investor exits remain a significant feature of the market, with 30% of vendors selling being investors.

Ms Finnegan noted: “Planned changes to the rental system from March next year have once again resulted in unintended consequences. While the reforms provide greater clarity for tenants and larger landlords, many smaller landlords are exiting the market at pace, further exacerbating the supply shortage within the rental sector,” said Ms Finnegan.

The number of units granted planning permission in the first nine months of the year increased by 4.9% compared with 2024.

“2025 has seen meaningful progress by Government to improve housing delivery, particularly through the publication of new housing and infrastructure plans. Nevertheless, the housing emergency persists, and 2026 will be a critical year in assessing the effectiveness of recent legislative and policy reforms,” said Ms Finnegan.