The number of housing commencements in the first quarter of the year was more than double that of the same period last year, new data from estate agent Sherry FitzGerald shows.
The group said construction got under way on 8,408 homes over the three months, which was up from 2,961 over the same period in 2025.
It was also the strongest first quarter since records began in 2015, apart from 2024 when there were 11,989 commencements as builders sought to avail of development waivers.
However, despite the improvement, the estate agent said supply remains “below demand”, and Dublin’s development concentration has led to shortages and rising prices in regional markets.
READ MORE
Sherry FitzGerald reported a 1.3 per cent increase in the average value of second-hand homes nationally during the first quarter of 2026. This marks a moderation compared with the 2.3 per cent increase recorded in the same period last year.
On an annual basis, average residential property values rose by 5.8 per cent, easing from the 7.5 per cent growth recorded at the same time last year.
Price growth remained notably stronger outside the capital. The average value of second-hand homes in regional markets increased by 1.8 per cent in the first quarter and by 8 per cent over the past 12 months.
In contrast, Dublin experienced more moderate inflation, with prices rising by 0.8 per cent in the quarter and 4 per cent year-on-year.
Sherry FitzGerald chief executive Marian Finnegan said: “This divergence [in price growth in Dublin and regional markets] underscores the acute shortages of second-hand housing supply in rural and regional Ireland. Despite ongoing global challenges, prices continue to rise, driven by persistent imbalances between supply and demand.”
In 2024 and 2025, Dublin accounted for 35 per cent of all residential units commenced. By comparison, about 29 per cent of the estimated 56,200 new units required annually are needed in Dublin, the estate agent said.
“This suggests that regions outside of the capital will continue to see stronger price inflation in the short term.”
Transaction data for 2025 indicate household buyers accounted for 50,461 residential purchases, based on stamp duty records, representing a 3.3 per cent increase on the previous year.
The new homes market experienced strong growth, with transactions increasing by 18.2 per cent year-on-year.
Household buyers completed 12,125 new home purchases – the highest level recorded since data collection began in 2010. This followed the delivery of 36,264 new homes in 2025, which was a 20.4 per cent increase on the previous year.
Has the fuel protest shown that the loudest lobby generally gets what they want?
Dublin, Kildare, Meath, and Wicklow remained the primary hub for housing activity, accounting for 51 per cent of all new home transactions.
Cork represented a further 15 per cent of activity in this segment. Activity in the second-hand market remained broadly stable, with transactions declining marginally by 0.7 per cent to 38,336. However, supply constraints persist, the report said.
Research conducted by Sherry FitzGerald earlier this year found that just 0.7 per cent of the State’s second-hand housing stock was available for sale in January 2026, which was described by the agent as “well below the level required for a properly functioning market”.
The trend of landlords exiting the market, evident for more than a decade, continued into the first quarter.
Data from Sherry FitzGerald shows that investors accounted for just 9 per cent of second-hand home buyers during the period, while 32 per cent of vendors were investors selling their properties.
“There is currently no evidence to suggest that recent changes to rental legislation have accelerated this trend,” the report stated.
Finnegan added there were “encouraging improvements” in planning permissions and housing completions last year, but “sustained progress in these areas will be essential to meaningfully increase housing supply”.
“At the same time, geopolitical developments remain a key risk, with the potential to impact construction costs, interest rates, and overall project viability, which could affect housing delivery in the short to medium term,” she said.
