Cost of homes in Ireland's western counties outdo those on east coast

DUBLIN, Ireland - House prices in western counties surged last year, doubling the rate of growth on the east coast due to record-low housing supply, according to the Q4 REA Average House Price Index.

Counties Clare, Donegal, Galway, Limerick, Mayo, Roscommon, and Sligo saw prices for three-bed semi-detached homes jump by over 10,000 euros in the last 12 weeks, with an average annual increase of 16 percent. This compares to a 7.5 percent annual rise in commuter counties.

Nationwide, the selling price of a three-bed semi rose by 2.1 percent in the last quarter to 330,602 euros, reflecting a 9 percent annual increase. The western region experienced unprecedented inflation, with Mayo recording a 25 percent annual rise and Clare seeing a 21 percent increase. Galway city prices increased by 10,000 euros for the second consecutive quarter, reaching 370,000 euros-a 10 percent annual rise.

"There are very few options for buyers, especially in areas without new home construction," said REA spokesperson Seamus Carthy. "Frustrated buyers often bid on multiple properties and are now holding off until 2025, which could lead to more intense bidding wars as limited supply persists."

Dublin city saw a 1.8% quarterly rise, bringing the average price of a three-bed semi to 542,000 euros. Cities outside the capital, including Cork (390,000 euros), Limerick (320,000 euros), and Waterford (312,000 euros), experienced quarterly increases of 1.3 percent, 1.6 percent, and 2.3 percent, respectively, with an average annual growth rate of 7.7 percent.

In large towns, house prices showed the strongest growth, rising by 11.5 percent year-on-year to an average of 249,448 euros. Mayo led the yearly increases with a 25 percent surge to 240,000 euros, marking a 48,000-euro jump since March. Clare saw the most significant quarterly increase, with prices climbing 20,000 euros to 290,000 euros.

Commuter counties reported a 2 percent rise over the past three months to an average of 343,778 euros, reflecting an annual increase of 7.5 percent.

REA agents expect house prices to rise by 6 percent in 2025, driven by limited supply and increasing demand. "Prices exceeding 50,000 euros over the asking price are becoming common in bidding wars due to severe shortages," added Carthy.