Property and Mortgage Values for First-Time Buyers in Ireland Surge, BPFI Report Reveals
Dublin: The value of properties and mortgage loans for first-time homebuyers in Ireland has risen significantly, according to the latest Mortgage Market Profile Report by Banking and Payments Federation Ireland (BPFI). The report, covering the second half of 2024, highlights a dramatic increase in both property and mortgage values compared to five years ago.
In 2023, one-third of first-time buyer (FTB) homes were priced at or above €400,000, a threefold increase from 2010. The average FTB property value increased by €100,000 to €372,000, while the average mortgage loan rose by €78,000 (36%) to €294,000. First-time buyers also saw a significant rise in their average household income—from €70,000 in 2019 to €85,000 in 2023, a 22% increase.
The proportion of higher-value mortgages—those exceeding €300,000—has nearly doubled, rising by 44%. Lower-value loans (up to €200,000) also saw a notable rise of 21%, indicating shifts across the housing affordability spectrum.
BPFI CEO Brian Hayes stated that the ongoing rise in house prices is largely a result of increased demand and limited housing supply, particularly in urban centres.
Thousands of Approved Homes Remain Unbuilt in Dublin Region
A key factor exacerbating Ireland’s housing crisis is the large number of homes approved for construction but not yet started, especially in the Dublin area. Data shows that over 60,000 approved residential units in Dublin remain untouched.
Breakdown by Area:
- Dún Laoghaire–Rathdown:
- 8,689 units remain unbuilt as of end-2023.
- An additional 2,892 units are stalled due to legal proceedings.
- With final approval for a major development in Rathmichael, the number of unstarted units could soon exceed 20,000.
- Fingal:
- 15,613 homes were granted planning permission by April 2022.
- Only 2,900 units are under construction, leaving 12,713 unstarted.
- South Dublin:
- 5,299 units had started construction by late 2023.
- However, at least 15,000 units remain unbuilt, according to reports.
- Dublin City (Overall):
- By the end of 2022, 77,918 homes had planning approval.
- Over 43,000 units had not yet begun construction.
Underlying Issues:
While some delays stem from legal disputes or planning appeals, reports indicate that financial concerns, market speculation, and developer strategies are the main contributors to stalled projects. Allegations persist that some developers are deliberately delaying construction to capitalise on rising prices.
Call for Greater Transparency and Oversight
Housing advocates are calling on the government to tighten oversight on planning permissions and monitor progress post-approval. Local councils are currently required to publish lists of approved but unstarted developments, but many have failed to provide timely updates.
Stakeholders argue that without public transparency, it’s difficult to hold developers accountable or assess the true pace of housing delivery.
Thousands of demonstrators gathered in Dublin and Cork on Saturday as part of the “Raise the Roof” campaign, calling for urgent government action to address the worsening housing crisis. Protesters demanded increased investment in public housing, stronger regulation of private rents, and faster delivery of approved housing projects.
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