Northern Ireland Housing Market Closes Strong in 2025. What It Means for Buyers and Developers in 2026

Northern Ireland’s housing market ended 2025 with steady, sustainable growth, a signal of resilience after a period of economic uncertainty and constrained supply. According to the latest Northern Ireland Quarterly House Price Indexreleased by Ulster University in partnership with the Northern Ireland Housing Executive and Progressive Building Society, average house prices rose to £221,233 in the final quarter of the year, up 0.4% on the previous quarter and 4.8% compared with the same period in 2024. 

A Market Defined by Stability, Not Volatility

Rather than sharp increases or dramatic swings, the 2025 housing market in Northern Ireland settled into a pattern of modest, sustainable growth. This suggests that sellers and buyers are engaging with the market at realistic price points, supported by a more predictable interest rate environment and continued competition among mortgage lenders. 

At Hagan Homes, we see this as a positive indicator of market health. Stability in prices builds confidence across the board, not just among homeowners and investors, but also among developers and builders planning future projects.

What’s Driving Growth, and What’s Holding It Back

A few key forces are shaping the current housing landscape:

• Affordability remains a central issue. While prices are rising gently, buyers, especially first-time buyers, still face challenges in accessing the market due to limited supply and ongoing affordability pressures. 
• Supply restrictions are still real. Available stock remains constrained relative to the level of demand in many parts of Northern Ireland. This imbalance continues to support prices and underscores the need for increased new housing delivery. 
• Confidence remains broadly positive. Agent feedback suggests that over 60% of market professionals expect prices to either hold steady or rise modestly into early 2026, with bidding activity and enquiry levels remaining healthy through year-end. 

At Hagan Homes, we recognise that a balanced housing market requires not just demand, but a sustainable pipeline of new homes, homes that are affordable, well-designed, and suited to local needs. Supply side challenges don’t disappear overnight, but steady price growth paired with ongoing buyer interest is an encouraging backdrop for continued development.

Regional Variations, Strong Growth Across the Map

While the overall figure for Northern Ireland points to stable growth, certain local areas stood out more than others. For example, Fermanagh & Omagh and Armagh City, Banbridge & Craigavon recorded some of the highest annual increases, reinforcing differing dynamics between regions. 

For developers and planners, these regional trends are important. Areas with stronger investor interest or demographic growth may justify more ambitious schemes, while others will require targeted, affordable housing solutions.

What 2026 Might Bring

Economic analysts forecast that 2026 will continue to see modest, sustainable market growth, supported by easing interest rates and ongoing competition between lenders. 

From the Hagan Homes perspective, this signals a period of opportunity for thoughtful development,  but with a clear focus on addressing housing supply and affordability head-on. As we plan new communities and projects, our priorities will remain:

• Delivering quality homes that match local market demand
• Supporting first-time buyers and families with accessible pricing
• Building sustainably within communities where infrastructure and services can thrive

Ultimately, the Q4 figures tell us that Northern Ireland’s housing market is not overheating,  it’s functioning and progressing. For prospective buyers and investors, that’s reassuring. And for developers, it’s a cue to innovate responsibly and deliver homes that truly meet the needs of our communities.