Ireland’s Property Market 2025: Residential Growth & Commercial Challenges – A Year in Review

Ireland’s property market is telling two very different stories this year. According to our latest bi-annual buildings reports— in its 23rd edition on residential properties and 29th on commercial—the housing sector continues to show robust growth, while commercial spaces face continuous vacancy challenges. In this roundup, we dive into the key trends shaping residential properties and businesses across the country, drawing insights from our report findings this year.

Key Figures at a Glance:

• Residential stock: 2.19 million dwellings
• New addresses added: 33,002 (53% in Greater Dublin Area)
• Residential vacancy rate: 3.7% (Dublin lowest at 1.1%)
• Commercial stock: 211,149 units
• Commercial vacancy rate: 14.6% (Sligo highest at 20.8%)

Residential Market: A Year of Expansion

Ireland’s housing stock continued its upward trajectory throughout 2025. By Q2 2025, the total number of residential dwellings reached 2,187,222, marking an increase of 35,886 units (+1.7%) year-on-year. Apartments now account for 10.9% of the national stock, with 238,714 units, up 5.1% from Q2 2024.
Dublin continues to record the highest levels of new construction activity, accounting for 16.7% of all buildings under construction. Over the past 12 months, 33,002 new residential addresses were added to the GeoDirectory database, representing 1.5% of total stock. More than half of these were in the Greater Dublin Area, with Dublin alone accounting for 38.7% of additions.

Vacancy rates continued to decline, signalling improved utilisation. The national residential vacancy rate fell to 3.7%, with 80,328 vacant dwellings, down from Q2 2024. Dublin recorded the lowest vacancy at 1.1%, while Leitrim remains the highest at 11.9%, despite a slight improvement.
Price pressures persist, however. The national average house price climbed to €420,469, up 9.8% year-on-year, underscoring ongoing affordability challenges despite increased supply.
 

Commercial Property: Vacancy Hits Record High

While residential growth paints a positive picture, the commercial sector faces mounting headwinds. The national commercial vacancy rate reached 14.6% in Q2 2025, up from 14.5% in Q4 2024, marking the highest level since reporting began in 2013. Out of 211,149 commercial properties, 30,800 units were vacant.

County extremes highlight the challenge:

• Highest Vacancy: Co. Sligo at 20.8%
• Lowest Vacancy: Co. Meath at 10.0%
• Trend: Vacancy rates increased in 17 counties, remained unchanged in Kildare and Wexford, and declined in only seven.

Sectoral Breakdown:

• Services: 49.5% of occupied commercial units (largest share)

• Retail & Wholesale: 21.8%

• Health: 9.6%

While Services dominate, Retail & Wholesale saw the largest decline in occupied units (decrease of 520 year-on-year), reflecting ongoing pressure from e-commerce and shifting consumer habits. The Accommodation & Food Services sector, accounting for 14.4% of NACE-coded stock, also decreased by 150 units, despite its importance in tourism-heavy counties like Kerry (23.8%), Clare (20.4%), and Donegal (19.0%).

Regional Breakdown

Leinster (Excluding Dublin)

Leinster’s commercial vacancy rate (excluding Dublin) remained steady at 12.9%, the lowest among the provinces. Meath leads nationally with 10.0%, while Offaly tops Leinster at 15.7%. Town-level data shows Greystones (Co. Wicklow) with the lowest vacancy at 5.5%, contrasting sharply with Edgeworthstown (Co. Longford) at 27.5%.
Sectoral note: Services dominate at 47.5%, while Retail & Wholesale accounts for 23.6%.

Dublin

Dublin’s overall vacancy rate rose to 13.9%, still below the national average. However, disparities across districts are stark: Dublin 2 recorded 18.4%, while Dublin 15 sits at just 6.8%. Services remain the backbone of Dublin’s economy, accounting for 52.2% of occupied units, with Financial Services at 5.0%, double the national average.

Munster

Munster’s vacancy rate increased slightly to 14.1%, remaining below the national average. Co. Limerick leads the province with 17.9%, while Co. Kerry has the lowest at 12.2%. Shannon (Co. Clare) stands out with a staggering 30.8% vacancy rate among towns.
Sectoral note: Services hold 49.5%, Retail & Wholesale 22.0%, and Health 9.5%.

Connacht

Connacht faces the highest provincial vacancy rate at 18.6%, with all five counties above the national average. Boyle (Co. Roscommon) tops the list at 29.8%, while Westport (Co. Mayo) is the only town below the national average at 13.0%.
Sectoral note: Services dominate at 49.8%, followed by Retail & Wholesale at 22.0%.

Ulster

Ulster’s vacancy rate climbed to 17.1%, with Co. Donegal at 20.3%. Ballybofey leads the province—and the country—with 33.7% vacancy. Buncrana and Bailieborough fare better at 13.8% and 13.9% respectively.
Sectoral note: Services account for 47.8%, Retail & Wholesale 23.4%, and Health just 7.3%, the lowest share nationally.
 

What Does This Mean for 2026?

Residential buildings outlook
Supply improved and vacancy fell in 2025, but affordability remains a challenge as prices continue to rise. According to recent forecasts from the ESRI publications, housing completions are expected to exceed 33,000 units in 2026, driven by government targets and continued demand in urban areas. However, price growth is likely to moderate, with projections of 3–4% annual increases, as interest rates stabilise and inflation pressures ease, according to Central Bank of Ireland.

Commercial buildings outlook
Persistent vacancies signal structural changes in Ireland’s business landscape. Reports from Savills and CBRE research suggest that retail spaces will continue to be repurposed into mixed-use developments, healthcare facilities, and flexible workspaces. Demand for prime office locations in Dublin is expected to remain steady, but secondary markets may face further vacancy pressures as hybrid working models become entrenched. Industrial and logistics sectors are forecast to grow, supported by e-commerce and supply chain resilience strategies.

We hope this year’s reports continue to give you valuable insights into the trends shaping Ireland’s property market. We’ll be continuing our building reports next year—look out for the residential and commercial building reports in early 2026.