The Irish mortgage market experienced a booming year in 2024, with a surge in activity driven primarily by first-time buyers. Despite a slight decline in overall drawdown volumes, the value of mortgages drawn down reached record highs, indicating a resilient housing market.
Last year witnessed a surge in mortgage activity, reaching an annual volume of 26,242 – the highest level since 2007, according to the Banking & Payments Federation Ireland ( BPFI ). This robust activity was driven by a strong performance in the first-time buyer segment, which saw a 2.5 percent increase in drawdown volumes and an 8.4 percent rise in values compared to the previous year. The fourth quarter of 2024 proved particularly encouraging, with a 12.
3 percent surge in drawdown volumes and a 20.1 percent increase in loan values compared to the same period in 2023. This positive trend extended to mortgage approvals, with a total of 3,592 mortgages approved in December 2024, representing a 28.6 percent jump from December 2023. A notable 60 percent of these approvals were directed towards first-time buyers. The Irish mortgage market exhibited a strong performance throughout 2024, with a total of 43,030 mortgages drawn down, valued at €12.6 billion. While the overall mortgage drawdown volumes experienced a slight 1.3 percent decline year-on-year, the value of these drawdowns increased by 4 percent. Notably, first-time buyers continued to dominate the market, accounting for a significant share of both approvals and drawdowns. A separate BPFI report revealed that 51,337 mortgages worth over €15.3 billion were approved in 2024, marking a 2.9 percent increase in approval volumes and an 8.2 percent rise in approval values compared to the previous year. Brian Hayes, BPFI's Chief Executive, highlighted the continued strength of the Irish housing market, stating that first-time buyers remained a key driver of mortgage activity. He emphasized the positive outlook for 2025 and beyond, citing the solid growth in mortgage approvals as a promising indicator. Hayes also noted the encouraging trend of increased first-time buyer mortgages for new properties and self-builds, reaching their highest annual volume and value since 2008 and 2007 respectively. While demand for housing and mortgages remained robust, Hayes acknowledged that activity beyond the first-time buyer segment was more mixed. The average first-time buyer mortgage on new properties rose by 1.6 percent year-on-year to €321,912, while the average first-time buyer mortgage on second-hand properties increased by 7.4 percent to €283,969. Trevor Grant, Chairman of Irish Mortgage Advisors, interpreted the strong figures for first-time buyers as a clear indicator of the enduring demand for home ownership. However, he emphasized the need for a significant increase in new home construction to curb escalating house prices and address the growing demand
Mortgage Market First-Time Buyers Housing Demand Ireland BPFI Mortgage Drawdowns Mortgage Approvals
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