Galway’s property market has seen another year of strong demand, rising prices and constrained supply, with estate agents across the city and county pointing to a highly competitive landscape shaped by first-time buyers, returning emigrants and ongoing housing shortages.
While new developments and rental market changes are beginning to influence supply, affordability pressures and broader economic uncertainty are also starting to shape buyer behaviour heading into 2026.
“The residential property market across Galway city and county has had a very strong year overall,” said Ryan Hanly of HPS Real Estate, with demand “remaining robust across most segments of the market.” Similarly, Martin O’Connor of DNG Martin O’Connor said “the residential market in Galway has performed very strongly over the past year,” with “significant growth… driven by new developments".
Olivia Lynch of Lynch Auctioneers said the market “has remained very strong over the past 12 months, driven by continued supply shortages and steady demand, particularly from first-time buyers and returning emigrants,” while Hugh and Colm O’Donnellan of O'Donnellan & Joyce Auctioneers said the market “continued to grow in demand over the past twelve months,” with “low level of supply and increased demand, most notably with purchasers relocating".
Supply constraints remain a defining feature. According to Tony Kavanagh of Sherry FitzGerald said “the number of second hand residential properties that came to the market in 2025 had fallen by approximately 10 per cent on 2024,” creating “a very competitive market place for potential buyers often resulting in properties attracting multiple bidders and continuing capital price growth.” Niamh Madden of Sherry FitzGerald Madden also pointed to “continued strong demand, rising prices and limited supply” in east Galway.
Exceeding Celtic Tiger prices
In many areas, competition for homes remains intense. Ciara Lally of Rooney Auctioneers said “the residential property market has exceeded Celtic Tiger prices in many area of Galway in 2025, driven by the lack of housing supply,” with “bidding wars of almost a dozen bidders in some cases and marketing campaigns of as little as two weeks to reach an agreed sale.” Lynch added that “competitive bidding is still common for well-located properties.”
Strong demand is particularly evident at lower price points. Shelagh McGann of Keane Mahony Smith said “there has been strong interest in price range under €500,000,” with “huge interest in areas such as Oranmore on the east of city” and “increased interest this year in the Claregalway area.” She added that “homes under 550,000 went sale agreed at pace,” while Lynch noted that “demand is likely to continue to outstrip supply, particularly in the €300,000 to the €500,000 range.”
Buyer preferences are also evolving. Hanly says that over the past 12 months he and his colleagues have noticed a “a subtle shift in buyer behaviour,” with larger country homes and higher-value family properties he is "beginning to see slightly longer sales cycles.” McGann said that buyer's "purchase ability has certainly moved into a difference category,” with some initially “seeking four bed semi homes…now looking at three bedroom homes.” O’Donnellan & Joyce also noted “purchasers seeking more turn-key condition properties,” with “the cost increase in building works” making renovation projects more difficult.
Salthill continues to appeal to buyers
City locations continue to perform strongly. Hanly said “properties within Galway city remain highly sought after due to employment opportunities, education, lifestyle and infrastructure,” while Ian Hutchinson of M&C Property said “prices continue to rise… especially Salthill where we have seen apartments with sea views rise higher than any other property type.”
The rental sector is also influencing the market. Hanly said “since June 2025 we have seen a noticeable increase in notices served on tenants,” while McGann said “a number of second hand investment properties [are] being listed as a result of new rental regulations and changes.” However, Hanly added that “many landlords have ultimately decided not to proceed with exiting the market,” and O’Connor noted that “the withdrawal from the rental market of small landlords has seen the supply of second hand homes supply increase slightly.” Hutchinson said “there will be a rise in former rental properties being brought to the market but this will not meet the demand for owner occupiers.”
2026 projections
Looking ahead to 2026, agents expect continued pressure on supply and steady demand. O’Connor said that he and his colleagues, "predict a steady rise in the Galway residential market throughout 2026,” while Hanly said “the outlook for 2026 remains positive, although the market will likely become more measured at higher price points.” Lynch expects the market “to remain stable in 2026, with modest price growth,” and Madden said she expects “continued price growth and strong demand".
However, challenges remain significant. Lally said “there is such a vast gap between the current level of housing demand and the incoming supply,” and that even with additional stock “this is still just a drop in the pond of what is urgently needed.” She added that with no sign of alleviation "the fight for second-hand homes will persist,” citing “planning permission limitations, labour shortages and material prices".
Positive signs for supply
There are some positive signs on supply. Hanly pointed to development sites with “the potential to deliver in excess of 1,500 new homes,” while O’Donnellan & Joyce said “an increase in new development properties should help in alleviate the pressure on supply in the next twelve months,” alongside “an acceleration in planning approvals.” Kavanagh also noted increased new dwelling output, though “demand… far exceeds the level of completions.”
Uncertainty is another factor as the market moves into 2026, with newly introduced rental legislation leading to increased activity on the sales market, alongside the continued cost of living crisis. "There are a lot of unknowns with the new rental legislation,” explained Hutchinson, while Kavanagh warned “the world is in an uncertain place,” adding that “business, property and markets in general do not like uncertainty.” McGann said “the increasing cost of living without doubt is having an impact on current purchasing ability,” while Hanly noted buyers are “becoming far more conscious of their spending power.”
Despite these pressures, agents remain confident in Galway’s underlying appeal. Hanly said “Galway continues to be one of the most attractive regions in Ireland due to its employment base, universities, lifestyle offering and quality of life,” with demand “likely to remain strong” as the market moves through 2026.
