PROPERTY PRICES HAVE risen by 7.4% in the last year, and there’s been a slight increase in the number being sold, new figures from the Central Statistics Office (CSO) show.

Property prices in Dublin rose by 5.3%, while prices outside Dublin were up by 9.2%, in the 12 months to August 2025.

The median price of a home purchased in that time was €375,000.

The highest median price for a home was €675,000 in Dún Laoghaire-Rathdown, while the lowest median price was €190,000 in Donegal.

In some parts of Ireland, house price inflation is well above average, meaning many locals are being priced out of their hometowns and areas once considered affordable for commuters are now less so.

That’s according to Trevor Grant, chairperson of Irish Mortgage Advisors, who predicts house prices will continue to rise “for the foreseeable future”, regardless of measures introduced in Budget 2026 to tackle the crisis.

The government reduced VAT for property developers who build new apartments from 13.5% to 9%.

A new Derelict Property Tax was also brought in, with hopes that it’ll increase supply.

Grant said it is “disappointing” that the government still hasn’t to published its revised ‘Housing for All’ strategy.

The new plan was expected be published in July, but in June the Taoiseach confirmed that the publication would be pushed out until September. Tánaiste Simon Harris said the final version would be made available to the public this month.

Grant said: “If the government can’t get its plan together on how it intends to accelerate housing delivery in this county, what chance do those hoping to buy a home stand?

“Despite sustained demand, supply remains under pressure and ultimately, this mismatch between supply and demand is the biggest driver of Irish house price inflation.”

He said a “large cohort of young people” will be locked out of the market if steep house price inflation is allowed to continue. 

“Customer apathy means many are paying more for their mortgage than they need to,” Grant said. 

Wage inflation has not kept up, indicating a potential fall in mortgage affordability.