House price growth moderated in the third quarter as geopolitical uncertainty and higher interest rates weighed on buyers, the State’s largest estate agent said.
Sherry FitzGerald said the value of second-hand homes rose by 1.1 per cent between July and September and by 4.4 per cent annually.
This marked a slowdown from the level of inflation seen in previous quarters.
The company’s barometer of house prices, which is based on its own internal data, is the latest report to point to a cooling in the market here with purchasing power impacted by higher borrowing costs.
RM Block
Nonetheless, Sherry FitzGerald said the shortage of available homes continued “to shape market conditions”.
It cited stamp duty data showing that second-hand sales declined by 2.3 per cent to 16,544 in the first half of 2026.
At the same time new home transactions increased 20.4 per cent to 5,697, bringing total residential transactions to 22,241 – 2.6 per cent higher than in the same period last year.
The company highlighted an increase in planning permissions and commencements in the first half of 2026 as positive.
Apartment approvals drove the increase in permissions, rising by 47 per cent to 8,790.
Sherry FitzGerald chief executive Marian Finnegan pointed to the jump in apartment approvals as particularly encouraging for the market overall, although those approvals would have to lead to completed homes.
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She also highlighted the continued shortage of serviced land and infrastructure issues making it more difficult for buyers who are struggling to afford their own home.
The Government is targeting about 300,000 new homes to be built between 2025 and 2030, a level of construction not seen since the Celtic Tiger period of the mid-2000s.
The head of Glenveagh Homes, Stephen Garvey, said recently the Government had the “right” policy mix in place to deliver 50,000 homes a year.
He said policy changes announced recently, including changes to design standards, an overhaul of the rent rules and a reduction in VAT on new builds, had removed an estimated €100,000 “viability gap” for apartments.
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While the direction of travel is positive, Sherry Fitzgerald said permissions and commencements were only part of the solution.
