Real estate market index
Ireland's property market index continues to deliver some of the strongest results in Europe. The sustained growth trajectory is highly favourable for investment.
Average price per square metre
Our forecast that the 2024 growth rate would be maintained in 2025 has materialised. The market has moved into a more stable growth phase, avoiding overheating.
Share of foreign buyers
The total number of transactions is declining in proportion to the contraction in foreign activity, which fell from 3% in 2021–2022 to 2.4% in 2025. Market activity is contracting, but without signs of recession.
Key foreign buyers
84% of foreign demand comes from EU citizens and 9% from UK citizens. A further 6% is accounted for by buyers from the United States and Canada.
A significant share of transactions is carried out by legal entities. This is the principal investment structure used by foreign investors in the Irish property market. The key buyers are investment funds and multinational corporations headquartered in Ireland. The extensive use of legal entities by foreign investors is driven primarily by tax advantages.
Actual foreign demand
In reality, therefore, non-residents account not for 3% of transactions but for approximately 20%. Absent any change in Irish economic policy, this trend is expected to persist over the next 3–5 years.
Demographics
Ireland has a highly favourable demographic profile, driven both by natural population growth and by strong net migration. A substantial part of this population consists of expatriates working for foreign companies.
Rental yield and rents
- Yields in the major cities are 7–9% per annum (around 8% in Cork and Galway).
- Rents remain high: a one-bedroom apartment in Dublin, for example, costs around €1,800 per month.
- The vacancy rate is extremely low (<1%) against stable demand.
- Rent growth in RPZ areas is capped at approximately 2% per year.
- Tax on rental income can reach 52% for individuals.
- Buy-to-let mortgage rates are around 5%.
Housing shortage and construction
- Ireland faces a shortfall of approximately 33,000–50,000 new homes per year.
- A record 32,525 units were completed in 2023, still below the required level.
- Almost 69,000 permits were issued in 2024, pointing to a recovery in development activity.
- The supply shortfall continues to support both prices and rent levels; rising construction volumes may, however, temper the market over time.
Cyclicality and price levels
- Prices have already exceeded the 2007 historical peak by approximately 17% nationwide.
- In Dublin, prices are approximately 4% above the previous bubble peak, and outside the capital around 18% above.
- The market is nonetheless more resilient than in the 2000s, supported by stricter mortgage regulation and more moderate income growth.
- The risk of overheating persists, but the current situation is broadly balanced.
Rental regulation
- Rent increases are capped by law in most cities.
- Evictions were temporarily banned during the pandemic.
- Nevertheless, the high occupancy rate makes rental income a reliable source of return.
Taxes and costs
- Transaction costs are moderate (approximately 2–3%).
- Rental income can be tax-optimised through legal structures (REITs or corporate entities, for example) — a key reason for the significant share of legal entities in residential property transactions.
In practice, Ireland combines strong returns with a high degree of predictability and a balanced risk profile. This is not a market of outsized returns, but it offers an excellent combination of factors for the systematic accumulation of capital, outperforming broad European benchmarks.
For these reasons, Ireland received the highest WhiteIndex rating for 2025 and has consistently featured in our top 10 countries for property investment. For 2026, however, we have discontinued the top 10 country ranking due to fundamental shifts in the geopolitical landscape that make such rankings functionally less relevant for investors.
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