January 2026
Ireland’s Real Estate Market: Overview, Outlook, and Opportunities
Real Estate Market Index
Ireland’s real estate market index continues to demonstrate some of the strongest performance in Europe. The steady growth trajectory is highly favorable for investment.
Average Price per Square Meter
Our forecast that the 2024 growth rates would be maintained in 2025 has materialized. The market has transitioned to a more stable growth phase, avoiding overheating.
Share of Foreign Buyers
The total number of transactions is declining in proportion to the reduction in foreign activity, which decreased from 3% in 2021–2022 to 2.4% in 2025. Market activity is contracting, but without signs of a recession.
Key Foreign Buyers of Real Estate in Ireland
84% of foreign demand comes from EU citizens, with 9% from UK nationals. 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 represents the primary investment structure used by foreign investors in Ireland’s real estate market. The key buyers are investment funds and multinational corporations with headquarters located in Ireland. The active use of legal entities by foreign investors is primarily driven by tax advantages.
Actual Foreign Demand
Therefore, in reality, non-residents account for not 3% of transactions, but approximately 20%. Assuming no changes in Ireland’s economic policy, this trend is expected to persist over the next 3–5 years.
Demographic Situation
Ireland benefits from a highly favorable demographic profile, driven by both natural population growth and strong inflows of migrants. A significant share of this population consists of expatriates employed by foreign companies.
Rental Yields and Rates
- Yields in major cities range from 7–9% per annum (approximately 8% in Cork and Galway).
- Rental rates remain high: for example, a one-bedroom apartment in Dublin rents for around €1,800 per month.
- Vacancy rates are extremely low (<1%), with stable demand.
- Rent growth is capped in RPZ areas at approximately 2% per year.
- Rental income tax can reach up to 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.
- In 2023, a record 32,525 units were completed, yet this remains below the required level.
- In 2024, nearly 69,000 permits were issued, indicating a recovery in development activity.
- The supply deficit continues to support both prices and rental levels; however, increased construction may moderate the market over time.
Cyclicality and Price Levels
- Prices have already exceeded the 2007 historical peak by approximately 17% nationwide.
- In Dublin, prices are about 4% above the previous bubble peak, while outside the capital they are higher by approximately 18%.
- However, the market is more resilient than in the 2000s, supported by stricter mortgage regulation and more moderate income growth.
- The risk of overheating remains, but the current situation is broadly balanced.
Rental Regulation
- Rent growth is legally restricted in most cities.
- Evictions were temporarily prohibited during the pandemic.
- However, high occupancy rates make rental income a reliable source of returns.
Taxes and Costs
- Transaction costs are moderate (approximately 2–3%).
- Rental income can be tax-optimized through legal structures (such as REITs or corporate entities), which is a key reason for the significant share of legal entities in residential real estate transactions.
Summary
In practice, Ireland combines strong returns with a high degree of predictability and a balanced risk profile. While it is not a market for outsized returns, it offers an excellent combination of factors for systematic capital appreciation, outperforming broader European benchmarks.
For these reasons, Ireland received the highest WhiteIndex rating for 2025 and has consistently ranked among our Top 10 countries for real estate investment. However, for 2026, we have discontinued the Top 10 country ranking due to fundamental shifts in the geopolitical landscape, which render such rankings functionally less relevant for investors.
In practice, Ireland combines strong returns with a high degree of predictability and a balanced risk profile. While it is not a market for outsized returns, it offers an excellent combination of factors for systematic capital appreciation, outperforming broader European benchmarks.
For these reasons, Ireland received the highest WhiteIndex rating for 2025 and has consistently ranked among our Top 10 countries for real estate investment. However, for 2026, we have discontinued the Top 10 country ranking due to fundamental shifts in the geopolitical landscape, which render such rankings functionally less relevant for investors.