Strong demand for new homes across Galway is continuing to outpace supply, with estate agents reporting intense interest from first-time buyers and families, particularly for energy-efficient homes, while delivery remains slow and uneven across the county.
While new schemes and development land activity offer some encouragement, agents say the gap between supply and demand remains a defining challenge heading into 2026.
Mary Fahy of O'Donnellan & Joyce said the firm is seeing “strong demand in the new homes market,” noting that 2025 finished positively "with several new developments fully sold and nearing completion.” She added that “most of the new homes are being purchased by first time buyers,” supported by schemes such as Help to Buy and the First Homes Scheme, which have “made both purchasing and constructing new homes much more appealing.”
Fahy pointed to a number of active developments, including the first phase of Cairn Homes second Galway development on the Ballymoneen Road, as well as schemes in Knocknacarra, Claregalway and Moycullen. She said “the new homes are built to a high and sustainable standard which are super energy efficient making it easier on the pocket.”
Across the wider market, however, supply remains constrained. Olivia Lynch of Lynch Auctioneers said “there are a number of schemes at various stages of planning and construction across Galway; however, delivery remains gradual, and new supply is still not keeping pace with demand.” Similarly, Ciara Lally of Rooney Auctioneers said “new housing developments are limited in Galway, with many developers enticed to offer entire sites or significant chunks of new units to various housing bodies,” meaning “very few new homes reach the open market.”
Incremental increase
This imbalance is reflected in broader data. Patrick Cormican, Associate Director of Sherry FitzGerald New Homes, said “in Galway city and county, there has been a real lack of meaningful supply delivered in recent years,” while “demand from purchasers for new homes has remained extremely high.” He noted that “in 2025, there were 1,478 new homes delivered,” but “it’s estimated that close to 2,900 new homes per year will be required to adequately meet housing demand in the region.”
Cormican also highlighted a slowdown in future supply, saying “commencements dropped back significantly in Galway during 2025,” with “only 1,021 new builds started during the year, a 62 per cent decrease on commencements in 2024.” Despite this, he said “we do expect an increase in overall output in 2026… with incremental increase in supply over the coming years.”
Mairead Leonard, Managing Director of DNG Leonard & Heaslip, shared her thoughts on the topic saying, “the new homes market in Galway city and county continues to be characterised by strong demand and constrained supply,” particularly for “modern energy-efficient housing.” She added that “demand from first-time buyers and families for A-rated homes has grown significantly,” driven by “rising energy costs, green mortgage incentives and a greater awareness of long-term sustainability.”
She also pointed to the success of affordable housing initiatives, saying a recent scheme in Claregalway “was hugely popular and over-subscribed, showing the demand for such initiatives,” adding that “the scheme bridges the gap that could otherwise be a long-term barrier to home ownership for many people.”
Development
Looking ahead, agents say there is encouraging activity in development land and upcoming schemes. Ryan Hanly of HPS Real Estate said “there is growing activity in development land transactions throughout Galway,” with sites that “now have the potential to deliver more than 1,500 homes over the coming years.” He added that “the level of developer interest in Galway development land is an encouraging sign that housing supply will gradually increase.”
Martin O’Connor of DNG Martin O’Connor said his firm is “marketing a new development called Teampall Eanna in the heart of Moycullen village,” which is “attracting great interest from a range of buyer types,” and added that “we are actively preparing new developments in both the Oughterard and Moycullen areas, which we plan to launch this summer.”
New schemes are also emerging in key commuter areas. Shelagh McGann of Keane Mahony Smith pointed to a new development on Oranmore's Coast road, where 201 homes were constructed. Speaking about the development she said "strong interest will mean they are sold off plan,” while Leonard highlighted the upcoming launch of Cuan an Rois will "bring 67 new houses to Galway,” alongside larger schemes in towns such as Athenry.
Slow increase to housing stock
However, timelines remain uncertain in some parts of the county. Niamh Madden of Sherry FitzGerald Madden said “there are a number of small developments in the area at the moment,” but added that “it will be the second half of 2027 or indeed early 2028 before we see any significant developments in the area.”
Cormican also noted a shift in buyer demand due to affordability pressures, saying “we are seeing a shift in the demand profile with strong interest in the outer commuter belts where homes are more viable and affordable,” particularly in towns such as Athenry, Tuam and Loughrea.
Despite positive signs in the pipeline, agents remain clear that supply will take time to catch up. While new developments, government schemes and increased developer activity are helping to build momentum, the delivery of homes at scale remains the key challenge.
As Fahy noted, the appetite for new homes remains strong, particularly among first-time buyers eager to secure energy-efficient homes, but until supply significantly increases, competition is likely to remain intense across Galway’s new homes market.
