House price growth moderates as Ireland’s housing pipeline strengthens
House price growth moderates as Ireland’s housing pipeline strengthens
Statement by Marian Finnegan, CEO, Sherry FitzGerald
September 30th, 2026
· Second-hand home values rose by 1.1% in the third quarter and by 4.4% annually.
· Planning permissions increased by 28.0% in the first half of 2026.
· Apartment approvals rose by 47.4%.
House price growth moderated in the third quarter of 2026 against a backdrop of changing economic conditions and higher interest rates. While prices continue to rise at a firm pace, the strengthening in planning permissions and housing commencements is encouraging. The central challenge now is to convert that pipeline into completed homes and relieve sustained pressure across both the sales and rental markets.
Marian Finnegan, CEO of Sherry FitzGerald, said: “The increase in planning permissions is a welcome and important step. The strong rise in apartment approvals is particularly encouraging in a segment where delivery has faced considerable challenges. The priority now must be to convert these approvals and commencements into completed homes at a sustained pace. Infrastructure constraints, viability challenges and the shortage of serviced land continue to impede supply, and addressing these barriers will be essential if we are to ease affordability pressures and create a more balanced housing market across Ireland.”
According to the Sherry FitzGerald House Price Index, second-hand home values increased by 1.1% during the third quarter and by 4.4% over the year. Growth remained stronger outside Dublin, where values rose by 1.4% in the quarter and 6.0% annually, compared with increases of 0.8% and 3.2% respectively in Dublin.
The shortage of available homes nevertheless continues to shape market conditions. The latest CSO stamp duty data show that second-hand sales declined by 2.3% to 16,544 in the first half of 2026. New home transactions increased by 20.4% to 5,697, bringing total residential transactions to 22,241—2.6% higher than in the same period last year.
Sherry FitzGerald’s sales data also point to continued pressure on rental supply. Owner-occupiers accounted for 83% of purchases in the year to date and investors for a further 8.5%. By contrast, investment properties represented 29% of sales, indicating a continued net loss of homes from the private rental market.
The development pipeline strengthened considerably in the first half of 2026. Planning permission was granted for 20,004 homes, an increase of 28.0% year on year, equivalent to an additional 4,380 homes.
Apartment approvals drove the increase, rising by 47.4% to 8,790. A further 8,603 houses in multi-unit developments were approved, up 18.3%, alongside 2,611 one-off homes.
Regional trends were mixed. Approvals rose significantly in the Mid-West, by 153%, and in the South-West, by 99%. Dublin recorded an increase of 16.9% to 4,693 homes. However, declines in the Mid-East, West and Midlands underline that the recovery remains uneven.
Commencement activity also improved. A total of 22,854 homes commenced in the first eight months of 2026, compared with 8,711 a year earlier. August was one of the strongest months recorded in the past six years, with 3,880 homes commenced, 56% of which were apartments.
Ms Finnegan added: “The direction of travel is positive, but permissions and commencements are only part of the solution. Ireland needs more completed homes across every region and tenure type. Sustained delivery will require a determined focus on infrastructure, viability and serviced land so that more people can access the homes they need.”
For further information, please contact:
Jill O’Neill
Director of Marketing & PR
Sherry FitzGerald Group
Ph: 01 237 6324 / 086 252 3277
