Irish Vacation Home Market

Published on October 3, 2025 and written by Cyril Jarnias

Ireland, with its lush landscapes, spectacular coastlines, and rich cultural heritage, is attracting an increasing number of real estate investors seeking vacation homes. This article explores the opportunities in the Irish vacation home market and guides you through the essential aspects of this promising investment.

The Emerald Isle: A Gem for Savvy Investors

Investing in a vacation home in Ireland offers numerous advantages that make it a top destination for real estate investors:

• A dynamic real estate market: The Irish property market has experienced steady growth for several years, with prices increasing by an average of 5% annually over the past 5 years.
• Exceptional tourism potential: Ireland welcomed over 11 million visitors in 2024, generating tourism revenues exceeding €6 billion.
• Favorable tax conditions: Ireland offers attractive tax conditions for foreign investors, including some of Europe’s lowest capital gains tax rates on real estate.
• Recognized quality of life: Ireland consistently ranks among countries with the best quality of life worldwide, a major advantage for attracting long-term tenants.

Vacation Home Investment Hotspots

Several regions in Ireland stand out particularly for vacation home investment:

• Dublin and surrounding area: The Irish capital offers a dynamic property market and highly lucrative short-term rental opportunities.
• County Kerry: Renowned for its breathtaking landscapes, Kerry attracts numerous tourists and offers excellent seasonal rental potential.
• The West Coast: Cities like Galway or Westport appeal with their authentic charm and proximity to exceptional natural sites.
• County Cork: As Ireland’s second city, Cork and its coastal region offer a good balance between urban dynamism and preserved natural setting.

Keys to Successful Investment in Ireland

To maximize your chances of success with vacation home investment in Ireland, here are some essential tips:

• Work with a local real estate agent: Knowledge of the local market is crucial for finding the best opportunities.
• Carefully study regulations: Short-term rental rules vary by region, check with local authorities.
• Opt for professional management: If you don’t reside in Ireland, entrust your property management to a specialized agency to optimize rental income.
• Diversify your offerings: Make your property available for both seasonal rentals and long-term leases to maximize occupancy.

Attractive Returns Await

Vacation home investments in Ireland can offer very interesting returns. Here are some concrete examples:

• Dublin apartment: A two-bedroom in central Dublin, purchased for €350,000, can generate up to €25,000 in annual rental income, representing a 7% gross yield.
• Kerry cottage: A renovated traditional house, acquired for €200,000, can earn up to €20,000 per year in seasonal rentals, representing a 10% gross yield.
• Galway house: A family residence in the Galway region, purchased for €280,000, can generate €18,000 in annual rental income, representing a 6.4% gross yield.

Vacation home investment in Ireland offers excellent profitability prospects, combined with the appeal of a country rich in culture and enchanting landscapes. With a thoughtful approach and good knowledge of the local market, investors can leverage the Emerald Isle’s many assets to achieve a profitable and rewarding real estate investment.