House prices in Derry rise by 6.8% (£12,107) to £191,443

This represented the greatest price growth anywhere in the North.

Derry & Strabane now has the second lowest average house price after Armagh City, Banbridge & Craigavon where a home will set you back £190,194.

House prices in both areas are considerably lower than the average for the North as a whole (£212,996).

The figures are contained in the 2025 Q1 Northern Ireland Quarterly House Price Index Report,

“A total of six out of 11 districts saw price increases in the first quarter, compared to the last quarter of 2024, with the largest in Derry City & Strabane, where prices were up by 6.8 per cent, followed by Newry, Mourne & Down, up 4 per cent, and Mid Ulster, up 3.5 per cent.

“Prices also increased by 3.1 per cent in Belfast, by 2.7 per cent in Armagh City, Banbridge & Craigavon and by 1.7 per cent in Fermanagh and Omagh. In terms of price decreases, house prices fell by 5.5 per cent in Lisburn & Castlereagh and were down 2.8 per cent in Antrim & Newtownabbey.

“They also dropped by 1.6 per cent in Ards & North Down, by 1.2 per cent in Causeway Coast & Glens and by 0.9 per cent in Mid & East Antrim,” the report notes.

Generally the index highlights how, after a slower end to 2024, the average price of properties (£212,996) was up 5.9 per cent (on a weighted basis) than the first quarter of 2024.

Dr Michael McCord, reader in valuation, investment and finance at Ulster University, and lead researcher stated:  “The NI Housing Market has shown continued stability and growth in the first quarter of 2025, driven by positive market sentiment, increased listings and buyer activity.

"Signals from key lenders have also seen improved affordability due to the increased availability of low-deposit mortgage options and mortgage interest rates dipping below 4 per cent for a number of products.

"Whilst the outlook remains cautiously optimistic, mounting headwinds do face the market moving further into 2025. Changes to stamp duty, global trade tensions, and uncertain macroeconomic conditions – such as a weakening UK job market could temper economic growth in the coming quarters.”

Ursula McAnulty, Head of Research at the Housing Executive, said: “Q1 2025 saw a relatively settled housing market, with agents reporting a more positive market sentiment. 

"The average price of a property in this quarter was £212,966, a 5.9 per cent increase from Q1 2024.  With 60 per cent of agents reporting an increase in transactions from the previous quarter, and 65 per cent reporting an increase in listings, this certainly is reflective of a more positive housing market. 

"However, this positivity was mixed across local housing market geographies, with a general tendency for growth in locations further way from the wider Belfast Metropolitan Area.” 

Michael Boyd, Chief Executive of Progressive Building Society, said:  “As we entered 2025, the NI housing market showed welcome signs of renewed activity, with average prices rising slightly and bidding levels improving across most regions. Consumer confidence is holding firm, particularly in the mid-to-lower pricing segments, where buyer activity has increased.”