House price inflation has slowed across the country with a two-tier second-hand property market emerging, the Q2 REA Average House Price Index has found.
The actual selling price of a three-bed, semi-detached house across the country rose by 0.9pc in the past three months to €367,988 – the first time the quarterly rate of increase has been under 1pc in over two years.
This represents a 5.8pc annual rise – slowing gradually from the 8.7pc increase registered at the end of 2025.
In what is becoming the great house condition divide, homes that require upgrade works are sitting on the market while bidders concentrate on ready-to-enter properties, according to REA agents.
The Q2 Index shows that while the rate of increase in sales prices has halved in the capital over the past three months, from 1.6pc to 0.8pc, average Dublin house prices have broken the €600,000 barrier for the first time.
The average cost of a three-bed semi in the capital’s postcode zones is now €600,120, representing an increase of almost €150,000 on the June 2021 average price of €456,667 – a 31pc rise in just five years.
The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
“Ready-to-go properties are selling almost immediately, but agents have experienced a slowdown in interest for homes that need upgrading,” said REA spokesperson, Seamus Carthy.
“The property that needs work is lagging behind because of the difficulties in securing tradespeople and a lack of confidence in proposed budgets due to rising costs.
“Purchasers who are willing to wait for a year to get their home into shape are availing of a range of grants from €50,000 - €70,000 depending on the condition of the property. This is in addition to the normal energy grants that are available.”
Selling prices in Ireland’s major cities outside Dublin rose by the same percentage as the capital, 0.8pc, to an average of €381,250 – also a 5.7pc annual increase, with homes selling in four weeks on average.
Average Galway city house prices reached the €400,000 level for the first time, after an increase of 0.5pc over the past three months.
Homes in the country’s large towns rose by 1.1pc this quarter – down from 2pc in the first three months of the year, and 7.3pc annually to an average of €281,287.
The biggest quarterly rise was in Ireland’s most affordable county, Donegal, where prices increased by 3.5 pc to €222,500 on average. This figure is a 12.7pc increase on the June 2025 value of €197,500.
The rate of price increases in Ireland’s commuter towns halved in Q2 to 0.5pc with the average three-bed selling for €379,219.
