SLIGO, Ireland – The price of the average three-bed semi-detached home in County Sligo has risen by €5,000 to €260,000, representing a 1.9% quarterly increase and an 11.8% annual rise, according to the latest Real Estate Alliance (REA) Average House Price Index. This growth is mirrored across the country, with prices driven by a persistent lack of supply and a notable increase in landlords exiting the market.
In a granular breakdown of the Sligo market, REA agents reported a 1.7% increase in Sligo town, bringing the average price to €305,000. Meanwhile, prices in Tubbercurry saw a 2.4% quarterly surge, reaching an average of €215,000 and marking a substantial 16.2% annual increase. Roger McCarrick of REA McCarrick & Sons highlighted the continued strong interest from all sections of the market. “The extension of the Rent Pressure Zone to the entire country, which now includes parts of County Sligo and Donegal that were previously exempt, is having the effect of forcing landlords to sell up and exit the rental market,” he noted.
The survey findings show a sharp acceleration in this trend following the government’s announcement in June of a nationwide extension of Rent Pressure Zones. REA agents across the country have reported a significant spike in landlord sales. In the past three months, over 40% of sales in Carlow, Kerry, and Waterford were attributed to landlords, with that figure climbing to 60% in Limerick city and a staggering 80% in Nenagh.
The REA Index, which focuses on the typical three-bed semi, provides a clear picture of the second-hand property market. Nationally, the actual selling price of this property type rose by 1.6% in the last three months to an average of €353,458, an overall annual increase of 9.1%.
Market Trends and Key Drivers
The national survey also sheds light on other critical market trends:
- Dublin’s Slowing Growth: The rate of price increase in Dublin has more than halved in the last three months, with REA agents reporting a marked drop in viewings. Homes in the capital are now taking five weeks or more to reach “sale agreed.”
- Cities and Towns Maintain Momentum: Selling prices in Ireland’s major cities outside Dublin rose by 2.2% to an average of €368,492, an 8% annual increase. Homes in large towns across the country continue to show robust growth, increasing by 2.2% this quarter and 10.7% annually to an average of €269,199.
- The BER Premium: The survey found that properties with a high-efficiency BER (Building Energy Rating) of A are commanding an average 17% premium over C-rated stock. This reflects a growing market preference for retrofitted, energy-efficient homes as buyers become increasingly conscious of rising energy costs and climate-related initiatives.
The combination of limited new supply, strong demand from first-time buyers, and the significant number of landlords liquidating their assets is creating a dynamic and competitive market, particularly outside of the capital.
