US buyers showing increased interest in Irish homes

Irish Examiner

18-06-2025

THE appetite for € 1m homes in Cork is heating up heading into the summer months , with demand split between city properties and lifestyle driven coastal and country homes, according to new data f rom Lisney /Sotheby International Realty .
The data, contained in Lisney/Sotheby's 2025 spring/summer residential market review, also shows a 10.4% jump in house prices in Cork and Kerry in the 12 months to February 2025.
The price rise was less dramatic in Dublin where the Residential Property Price Index recorded a 7.7% increase in the 12 months to February 2025.
In both cities, where housing shortages are acute, the number of homes sold fell. In Dublin, the figure was down 3.4% compared to the previous 12 months, with approximately 12,600 units sold. The drop was steeper in Cork, where the sale of c 3,800 homes represented a 10.8% decrease compared to the previous 12 months. Both cities also recorded c15% fewer second hand properties for sale at the end of April, compared to six months earlier. New home figures were up in Cork by 16% compared to a year previous, and down by 9% in Dublin. Nine in 10 new homes in Cork were houses compared to just 40% in Dublin.
Over the 12 months to Q1 2025, almost 44,000 mortgages were drawn down, with first time buyers accounting for 61% of all drawdowns.
The 'mid-price' range remains the most competitive market in Cork 'with properties often selling in excess of the asking price due to strong local demand for well-located, energy-efficient, ready for occupation homes', said Lisney Cork office divisional director Trevor O'Sullivan.
Meanwhile, the upper end of the market, above €1m, was 'gaining momentum heading into the summer season', Mr O'Sullivan said.
Interest from international buyers 'particularly relocating Americans, has been strong, with many seeking period or country homes'.
While the announcement of new US trade tariffs 'initially caused a dip in viewings', confidence had been restored by the introduction of a tariff 'holding period'.
'Activity has since rebounded,' Mr O'Sullivan said, adding that 'direct contact from the US buyers relocating to Ireland is now a regular feature'.
The country homes/castles sector continued to attract international buyers, 'particularly cash purchasers making lifestyle-driven decisions', said Lisney's head of research, senior director Aoife Brennan. These included both returning Irish 'often individuals who emigrated in the 1980s and built successful careers in the US, UK or mainland Europe', as well as overseas nationals seeking a second home.
'Ireland has become increasingly attractive to this cohort, particularly in comparison to traditional locations such as France, Spain, Portugal and Italy where rising summer temperatures now influence purchase decisions.'
'Ms Brennan said fully renovated homes in good condition attract the strongest interest, 'particularly among international purchasers who are less inclined to take on refurbishment projects or manage contractors from abroad'. As a result, they attract higher prices than those needing significant work.
In Dublin, demand for family homes priced between €1.5- €2m in desirable neighbourhoods remains strong, although Ms Brennan said buyers are more cautious than a year ago, 'driven by global instability'. That same instability was making some sellers nervous and resulting in supply still falling short of demand. Moreover the delivery of new homes was being impacted by planning and infrastructural delays and viability challenges. Nonetheless, the new homes market 'remained exceptionally busy in the first part of 2025, with strong buyer sentiment continuing to outpace demand. First time buyers trying to exit the rental market or move out of family homes were particularly active.
In Cork, 2025 got off to a 'slow start' but sentiment in the residential market is positive 'pointing to a busy second half of the year', Mr O'Sullivan said.