House prices in Ireland’s western counties are rising at twice the rate of those in the east, driven by unprecedented low housing supply, according to the Q4 Irish Independent REA Average House Price Index.
Counties such as Clare, Donegal, Galway, and Mayo saw prices for three-bedroom semi-detached homes increase by over €10,000 in the last quarter alone, marking a 16% annual rise.
Regional cities are experiencing steady house price growth, with Cork (€390,000), Limerick (€320,000), and Waterford (€312,000) seeing quarterly increases of 1.3%, 1.6%, and 2.3% respectively.
The price hikes are extending beyond city limits, with county towns surrounding major urban centres also feeling the impact of excess demand and limited housing supply.
In Galway, prices have risen by 17% over the past year, bringing the average house price to €270,000—a €10,000 jump in the last quarter alone.
Similarly, Co Limerick saw a 4% increase in three-bedroom semi-detached homes in three months, now averaging €260,000.
This trend highlights the growing challenges faced by buyers amid constrained housing availability.
This growth far outpaces the 7.5% increase recorded in commuter counties.
In Dublin, prices rose by a modest 1.8% in Q4, with the average three-bed semi now priced at €542,000.
Agents blame the steep price hikes on a lack of new housing developments and an acute shortage of second-hand homes.
These supply challenges are expected to sustain pressure on prices into 2025.
