The price for a two-bed apartment in Galway city has soared a staggering 85 per cent over eight years, according to the Institute of Professional Auctioneers and Valuers (IPAV ).
The professional body, which represents over 1,000 property auctioneers across Ireland, also reported that prices of similar apartments in County Galway have jumped a whopping 40 per cent since its Residential Property Price Barometer began tracking sales in 2017.
The IPAV figures were published last week, just as the Central Statistics Office revealed planning permissions for new apartments across the country fell by 39 per cent last year, from well over 21,000 units in 2023, to just over 12,000 in 2024.
Limerick city and Cork city showed a similar surge in two-bed apartment prices comparable to Galway – 85 per cent and 81 per cent, respectively - whereas the price of a two-bed flat in leafy Dublin 4 has risen by a much slower 27 per cent over the past eight years. The report authors note however, that urban areas in south Dublin had a head start in terms of rising property prices, as they saw an earlier recovery after the combined 2008 financial and property crash.
The average price of a two-bed, city apartment in Galway is now €285,000, compared to €169,000 in County Galway. In comparison, the average two-bed in Ballsbridge, Dublin, will set you back €532,500.
Speaking on the radio last week, director of housing and planning at the Construction Industry Federation (CIF ), Conor O’Connell, said planning applications for apartments in urban areas, such as Galway city, were too expensive for many small developers.
“Generally speaking, they’re in an urban area surrounded by existing people who’ve been living there a long time, and maybe do not necessarily want apartments nearby them,” he said. “Therefore, that coupled with all of this other uncertainty, plus the high cost of delivery... is definitely putting people off applying.”
There are multiple live planning applications for apartments in Galway city at present, with some in process for up to four years.
This week, an application for 28 units on the Monivea Road was lodged, and in January the Land Development Agency announced it intends to deliver 345 A-rated apartments at Crown Square in Mervue by 2026.
Plans for two blocks of 40 flats on the Clybaun Road in Knocknacarra are in planning, while a six-story block of 24 apartments has been approved overlooking Lough Atalia. More than 200 cost rental apartments are planned for Galway City Council land at the Dyke Road carpark, to commence next year.
Plans for four blocks of apartments and shops at the edge of Oranmore village are currently in appeal to An Bord Pleanála
Separately, several student-specific apartment developments with shared living facilities are at various stages of planning and construction around Galway city, with 600 new beds expected by 2027.
Last week, planning officials from the Galway City Council met with CIF representatives to discuss challenges to housing and apartment delivery, including assisting in new developments, acquisitions, and the repurposing of vacant or derelict buildings.
A study published by Trinity College, Dublin, last summer, examined the cost of constructing apartments across 10 European cities, noting that Dublin was second highest after Zurich, with Belfast second-cheapest after Tallinn, Estonia. Extrapolating the Irish figures, it seems reasonable to suggest that building an apartment in Galway city costs around €2,200 per square metre to a basic finish.
