As new-build activity accelerates nationwide, BPFI report shows sharp rise in first-time buyer borrowing and property values while mover activity declines across all regions
First-time buyers (FTBs) are driving a significant shift in Ireland’s mortgage market, with activity on new homes rising strongly across much of the country since 2021, according to the latest Mortgage Market Profile Report for the second half of 2025 from Banking and Payments Federation Ireland.
The report finds that first-time buyer mortgage volumes have increased in every region, with the strongest gains concentrated in new-build homes. In seven of the twelve mortgage regions, volumes for first-time buyers purchasing or building new properties climbed by more than 50% between 2021 and 2025.
“In seven of the 12 Mortgage Market Profile regions, first-time buyer volumes for new homes grew by more than 50% between 2021 and 2025”
Wicklow recorded the fastest pace of growth. First-time buyer mortgage volumes in the county rose by 54% overall during the period, while activity on new homes more than doubled, increasing by 122%. Cork and Limerick also recorded substantial gains, with new-build first-time buyer volumes rising by more than 80%, alongside similar growth in the Midlands.
Dublin and Cork saw more moderate expansion in overall first-time buyer activity, with increases of 26% and 30% respectively.
First-time buyer demand closely tied to new homes supply
Ali Ugur, chief economist at BPFI, said the findings highlight the strength of first-time buyer demand across the country. “Today’s report shows that 2025 was a strong year for FTB mortgage activity right across the country, while mover activity weakened in every region,” he said.
“Wicklow was the fastest growing region for FTBs, with FTB mortgage volumes jumping by 54% between 2021 and 2025, while volumes in Dublin were up 26% and by 30% in Cork over the same period.
“By contrast, each region recorded a decline in mover purchase volumes between 2021 and 2025 with Limerick, Meath and the West all showing a decline of more than 20% in mover volumes.”
A closer look at the property mix shows that the surge in first-time buyer demand is closely tied to the supply of new homes. Ugur noted that growth in new-build mortgages has been particularly pronounced.
“In seven of the 12 Mortgage Market Profile regions, FTB volumes for new homes grew by more than 50% between 2021 and 2025,” Ugur said. “Wicklow saw the fastest growth, with FTB volumes for new homes more than doubling (up 122%), while volumes jumped by more than 80% in Cork, Limerick and the Midlands. By contrast, FTB volumes on second-hand properties fell in four regions between 2021 and 2025: Cork, the Midlands, the West and the Border. Only four regions (the four eastern counties of Dublin, Meath, Kildare and Wicklow) recorded growth of more than 1% over the same period.”
Rising prices and borrowing levels have accompanied the increase in activity. The national median first-time buyer property value rose by approximately €100,000, or 33%, over the four-year period to reach about €399,000 in 2025.
Mortgage values have moved in tandem. The median first-time buyer mortgage increased by around €80,000, or 34%, to €316,000. The average mortgage for a new home reached €337,000 in 2025, while the average loan for a second-hand property exceeded €300,000 for the first time at €307,729.
Income levels have also risen, though at a slower pace than house prices. The median basic household income for first-time buyers increased by 20%, or roughly €15,000, to €89,000 over the same period.
“Rising property values, mortgage values and household incomes underline the extent to which affordability continues to shape mortgage activity across the country,” Ugur said.
Regional data in the report highlights differing dynamics in local markets. Dublin had the lowest share of mortgages drawn down by first-time buyers for new properties at 20%, while it recorded the highest share of mover activity in the existing homes market at 24%.
Cork strengthened its position as the second largest market after Dublin, accounting for 13% of national first-time buyer mortgages in the second half of 2025, its highest level in five years.
In Galway, self-build homes remain a key feature, accounting for 45% of new property mortgages, though this is down from 59% a year earlier.
Limerick stood out for its concentration of first-time buyers in the second-hand market, where they accounted for 53% of home mortgage activity, the highest share of any region.
Further east, Meath recorded strong increases in property values, mortgage sizes and borrower incomes, ranking second only to Dublin and Wicklow in several metrics. Wicklow itself maintained some of the highest median values for both movers and first-time buyers purchasing existing homes.
Kildare also crossed notable thresholds, with median prices for existing properties purchased by first-time buyers exceeding €400,000 for the first time, while household incomes in the segment moved above €90,000.
In contrast, the Border region recorded the lowest median mover mortgage value at €260,000, alongside among the lowest household income levels.
Property type trends show a continuing preference for detached homes outside major urban centres. In the West, detached houses and bungalows accounted for 54% of first-time buyer mortgages and 79% of mover mortgages. Similar patterns were observed in the South and Mid-West.
The Midlands recorded the highest concentration of first-time buyers, who accounted for 88% of all mortgage drawdowns in the region in the second half of 2025.
Overall, the report paints a picture of a market increasingly anchored by first-time buyers, particularly in new housing developments, as affordability pressures and supply constraints continue to shape behaviour across Ireland’s housing landscape.
Image at top: Photo by Jakub Żerdzicki on Unsplash
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