The consensus among the auctioneers The Galway Advertiser spoke to over recent weeks was that 2024 was a very strong year for residential property sales, and the market would remain robust in 2025.
Colm O’Donnellan of O’Donnellan & Joyce Auctioneers described the market as performing “exceptionally well” in 2024. According to Colm, “demand exceeded supply, and sales prices exceeded all our expectations" and he expects prices to increase by approximately five per cent to ten per cent in 2025. Colm also foresees 2025 as the start of the increase of supply in new homes.
Tony Kavanagh of Sherry Fitzgerald reported on a very strong residential market in Galway in 2024, describing it as a year of “strong sales activity and capital appreciation in the region of eight per cent, which was characterised by a shortage of supply and very healthy demand for all price categories”.
Tony sees this situation continue in 2025, forecasting “another year of shortage of supply, which already for the first two months of the year is 6 per cent behind in supply when compared to the same period in 2024. Demand continues to be healthy. The two combined are likely to result again in capital growth in the range of six to eight per cent for 2025, on the basis that there are no larger world shocks.”
Kyle O’Brien of DNG Maxwell Heaslip & Leonard outlined how they “had seen significant growth in the Galway city and county property market over the last year". He said this was particularly so in the residential market, which in quarter four of 2024 had seen the median house price reach €350,000 in the city, primarily due to limited supply and sustained demand”.
Kyle also expects to see “steady growth in 2025 across Galway city, expected to be in the region of 4.5 per cent. Although this is at a slower pace than previous years, the demand remains strong and in particular in urban areas. Limited supply will keep prices stable, in particular the mid-range sector. Overall, I expect the market to remain resilient, though potential economic uncertainties could influence buyer sentiment and lending conditions in the later part of the year.”
Shelagh McGann of Keane Mahony Smith Auctioneers, also talked of significant demand for four-bedroom homes, as purchasers are now that bit older. She said, “for example, in the Oranmore area, we have seen a ten per cent increase in prices of four-bedroom semi-detached homes. Demand for townhouses and apartments has also risen for the first time buyer market.
"We have seen a significant increase in interest in new build homes outside the city, and east of Galway city, i.e. within a 25km radius and priced up to €500,000 (availing of HTB grant ).”
Buyers are also looking for locations with good access to the city, according to Shelagh. She expects demand to remain strong in 2025, with the current low levels of supply, though she believes it “is difficult to see how the first-time buyer market can grow with further rising costs in the sector and the current cost of living”.
"The maximum price achievable for a well located second hand semi-detached home is c. €510,000 and salaries are not increasing at the level to match house price growth.”
Olivia Lynch of Lynch Auctioneers has seen a similar performance over the last year: “The property market in Galway has shown resilience and consistent growth over the last year. In December 2024, the average house price was up 10 per cent on the previous year in the Galway city area and surrounding suburbs, and up 5 per cent in the Galway county area. This continued upward trend in property prices shows the robust demand for houses in a market of low supply. Property prices in Galway have seen steady strong growth over the past few years, with house values increasing year on year since the COVID pandemic and even more so in the Galway area”.
Olivia anticipates that in 2025, house prices will continue to increase, but at a more moderated pace.
"I would expect Galway city’s market to remain competitive, with properties in the more sought-after areas maintaining high values. If the interest rates are to continue to decrease in 2025, this will also keep demand high. Unfortunately, low supply of houses is likely to continue in a market of increasing demand.”
Martin O’Connor of DNG Martin O’Connor Auctioneers, Valuers and Estate Agents said 2024 was by far the busiest year in terms of residential sale by DNG, with demand outstripping supply in all areas: “The majority of the purchasers were people returning to the area and those from the city with young families looking for more space. In the Connemara region there has been a significant increase in those looking to make the move to Ireland, especially Americans with Irish roots”.
“The Moycullen, Rosscahill and Oughterard areas are attracting a lot of interest mainly due to the excellent amenities they offer, such as excellent schools, community facilities and recreational activities all within an easy driving distance to the city.”
Looking to 2025, Martin said: “This year, despite the storms and world distractions, has started off very well. With a good line up of second-hand homes coming to the market in addition to new homes, we at DNG expect another very busy year.”
Deirdre D'Arcy from Rooney Auctioneers, Galway and Limerick, agreed that Galway’s property market performed very strongly in 2024: “Over the past year, the residential property market in Galway has experienced significant growth, driven by the continuing challenges faced due to limited supply, resulting in competitive buying conditions. In early 2024, house prices in Galway city were 9 per cent higher than the same period in the previous year, with the average home price reaching €379,000. This trend is continuing to place severe pressure on the second-hand market and is changing the landscape of buying patterns particularly with first time buyers”.
“Based on recent trends in Galway’s residential property market, the overall outlook for 2025 would suggest continued price growth. With limited supply and strong demand remaining a major issue, it would appear that prices will continue to be influenced upwards. However, we may see other factors having a moderating effect on growth. Improvements in housing supply arising from Affordable Housing Schemes and New housing developments in Galway may help ease supply issues slightly but overall, the shortage of homes, especially in Galway city, which is a highly desirable location due to its strong employment market, universities, and lifestyle appeal, is likely to continue to drive competition.”
Pat Callanan from Pat Callanan Property Sales echoes the statements of the other Galway auctioneers. Pat Callanan said they had “another strong year with demand high”. Going into 2025, Pat predicts the same outcome but said that “prices are rising again and supply continues to be a major issue in the Galway property market.”
