Dublin housing market stalls as cost of living creates ‘uncertainty’
Dublin’s housing market effectively stalled in the third quarter with sale prices rising by just 0.1 per cent as the cost-of-living crisis created “uncertainty among buyers”. That’s according to estate agency, REA’s latest house price index which focuses on sales of three-bed semis. The rate of increase in actual sale prices over the past quarter has fallen to 0.1 per cent in the capital, it said, compared with a rise of 0.8 per cent in the previous quarter. There was no price growth at all in commuter counties Louth, Meath and Wicklow over the quarter, REA said. The latest snapshot comes on the back of property website Daft’s quarterly report which details a slowdown in asking prices. “We are seeing a pause in the Dublin market, mainly due to general economic uncertainty,” said REA spokesman, Seamus Carthy. “Our agents report that the cost of living crisis is creating an uncertainty among buyers as to what they can afford – and the market is built on certainty. “There are a number of factors at play at the moment – rising costs generally, an increase in interest rates and also Dublin’s unique ties to multinationals and the tech industry,” he said. REA’s report noted that, with the average Dublin three-bed semi selling for €600,787, buyers were now slower to bid for any properties that require upgrade works due to uncertainty over future costs. “If homes are in turnkey condition they are selling very well, but if they require remodelling, then bidding is slower,” said Helen Fitzgerald of REA Fitzgerald Chambers in Dublin. “A year ago, people would have taken on properties that need work but potential buyers are now finding that they cannot get quotes from contractors, and, if they do, they cannot guarantee the price levels. The actual selling price of a three-bed, semidetached house nationally rose by 0.6 per cent in the past three months, it said, to €370,293, the first time in over two years that the quarterly rate of increase has been under 1 per cent for two successive months. This represents an annual rise of 4.7 per cent, down from the 8.7 per cent increase registered at the end of 2025. REA also noted that the percentage of landlord sales across the State fell from 28 per cent to 25 per cent following the introduction of new rental legislation in March. The biggest price rises nationally came in the big cities outside Dublin. They collectively saw average growth of 1.54 per cent to an average of €387,125 over the past three months, “double that experienced in the previous quarter”, it said. This represents an annual increase of 5 per cent, with homes selling, on average, in four weeks.