The latest Residential Mid-Year Market Monitor from the Society of Chartered Surveyors Ireland (SCSI) forecasts that national property prices are predicted to rise by an average of 5% over the next twelve months, a slight decrease from a 6% projection earlier this year.
This article was featured in our Property West Cork Autumn 2025 supplement – you can read the full supplement here!
As vice-chair of the SCSI Residential Committee, I feel it’s important to emphasise that the ongoing shortage of housing supply is the main factor influencing these price increases.
Over half of estate agents surveyed identified limited new housing supply as the primary driver of price inflation. Specifically, 51% cited supply constraints, up from 46% a year ago and 35% in 2023.
Additionally, 70% of agents report low stock levels across both new and second-hand homes, highlighting the ongoing challenge of limited availability for buyers nationwide.
The Economic and Social Research Institute (ESRI) predicts 37,000 new homes will be built this year, short of the government’s target of 41,000.
Addressing this shortfall through improved infrastructure and full activation of the Housing Activation Office is critical to easing market pressures.
Without these measures, supply constraints are likely to persist, continuing to limit buyer choice and placing upward pressure on prices.
Affordability pressures
The report reveals that 88% of agents describe current residential property prices as ‘expensive’ or ‘very expensive’, an increase from 83% earlier in the year. These figures reflect growing affordability challenges, particularly for first-time buyers facing significant barriers to entering the market. The widening affordability gap remains a concern, with many buyers needing to reassess their expectations or explore alternative areas.
West Cork mirrors national trends
West Cork’s property market shows similar patterns to those on a national scale, with strong demand met by constrained supply. Increased interest from American buyers, attracted by Ireland’s economic stability, education system, and climate, has added to local demand. Coastal properties are especially sought-after by buyers seeking a combination of lifestyle benefits and long-term investment value.
Homes that meet high energy-efficiency standards and are ready to move into (‘turnkey’ homes) are particularly popular. Rising renovation costs and a shortage of skilled tradespeople have led buyers to shy away from properties needing significant work unless priced accordingly. This shift means sellers presenting homes in good condition and with strong energy ratings often enjoy better sales outcomes.
Since the pandemic, county Cork has seen property prices rise by approximately 40%, driven by strong buyer demand and a shortage of homes for sale. The latest Daft.ie House Price Report puts the average property price in County Cork at €325,999, a 12% increase year-on-year.
Outlook and expectations
While demand remains firm, there are signs the pace of price growth may slow. 60% of agents surveyed believe prices will continue to increase but stabilise soon, with 18% suggesting prices may have already peaked.
Other influences on price include the state of the broader economy, noted by 20% of agents, and the availability of government support schemes such as Help to Buy and the First Home Scheme, mentioned by 16%.
Challenges
An increasing number of sales are falling through before completion. Key reasons include non-compliance with planning permissions, delays in banks releasing deeds, and non-compliance with building regulations.
Additional challenges reported by agents include vendors struggling to secure replacement properties, unforeseen renovation costs after contracts are signed, solicitor-related delays, inaccuracies in energy rating advertisements, and buyers submitting multiple offers on different properties simultaneously. These factors underline the complexity of current transactions and the importance of thorough due diligence.
Future growth and supply
The SCSI report clearly states:
‘Over half of agents believe the key factor influencing house prices over the next 12 months will continue to be the supply, or more accurately the lack of supply, of new housing.’
Without a meaningful increase in new housing supply, competitive conditions are expected to persist, especially in West Cork’s popular coastal and residential areas. Well-presented, energy-efficient homes will continue to attract the most buyer interest, while properties requiring substantial renovation may find a more limited audience.
Sellers with properties in good condition and high energy standards are well placed to attract strong buyer interest. She also stresses the importance of sellers being market-ready, and having legalities in order to prevent sales falling through.
Looking ahead, collaboration between government bodies, construction firms, and local authorities will be essential to address supply challenges and help ensure a more balanced market that supports both buyers and sellers across Ireland.
Majella Galvin is an estate agent, chartered surveyor and RICS registered valuer at DNG Galvin Auctioneers, Bandon.
She has been working in the property sector for over a decade and has built up a wealth of knowledge and experience of the property market throughout the years.
Majella holds a BSc in Real Estate & Valuations from the University College of Estate Management, Reading.
She is member of the Society of Chartered Surveyors Ireland and the Royal Institution of Chartered Surveyors.
Majella is passionate about helping people make informed decisions when buying or selling a property.
She writes weekly blogs to help buyers and sellers which can be found on www.dnggalvin.ie
