Dublin house prices see inflation slowdown amid weakening demand

The latest Daft Sales Report indicates a significant slowdown in house price inflation in Ireland, particularly in Dublin. While national list prices rose by 3% year-on-year to an average of just under €445,000, transaction prices in Dublin rose by only 0.8% in the year to September, marking the slowest rate of increase since 2020.

In Dublin, the average list price for a home reached €635,000. Although prices remain 44% above pre-Covid levels, they are currently 7.5% below the peak seen during the Celtic Tiger era. The report notes that the gap between initial list prices and final transaction prices has narrowed to 2.6% nationally, down from 6.8% a year prior.

Report author Ronan Lyons attributed the slowdown to weaker demand rather than increased supply. Lyons noted that while second-hand supply has recovered since the pandemic, the flow of homes onto the market has remained flat for three years. In Dublin, sales for both new and second-hand homes have fallen, which Lyons described as the ‘clearest sign of genuinely softer demand’.

Nationally, Waterford city recorded the fastest inflation at 11%. Other major cities, including Cork, Galway, and Limerick, saw increases of less than 6%.