Development land transaction activity in the Greater Dublin Area (including Dublin, Kildare, Meath and Wicklow) and the regional centres of Cork, Galway and Limerick, rebounded during the first half of 2024 to reach almost €411 million*, according to the latest research conducted by estate agent Sherry FitzGerald.
The figure is more than double the €146 million recorded for the same period in 2023. It’s also higher than the long-term the first-half average of €318 million, according to the report’s authors. It should be noted however that the figures for the first six months of this year were driven in no small part by two larger-sized transactions, with the more valuable of these deals - the US Embassy’s acquisition of the former Jury’s Hotel site in Ballsbridge - accounting for €152 million of the total spent. The second-most valuable land deal in the first half of 2024 meanwhile saw Cairn Homes paying over €50 million to developer Cannon Kirk for of a 70-acre residential site in Donabate, with potential to provide 1,020 new homes.
Overall, the volume of development-land transactions remained stable, with 43* sales closing during the first six months of this year, compared with 40 deals for the same period in 2023.
And while the €194 million turnover figure for the second quarter of this year came in below the long-term quarterly average, the figure is more than double that recorded in the same period in 2023.
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“The stronger activity levels seen in the development-land market during the first half of the year have been underpinned by a more positive economic outlook, reduced construction-cost inflation and the projected downward trend in lending rates, coupled with continued efforts by the State at addressing the housing crisis, said Jean Behan, senior economist and head of research at Sherry FitzGerald.
“This was seen in both the increased value of turnover and the return of larger-sized transactions,” she said.
Fifty-nine per cent of sites sold in the first half of the year are in Dublin, while 12 per cent are distributed across Cork and Galway, with greater activity levels seen in these regions during the first quarter. A further 10 per cent of the sites sold in the first six months are in Meath, while Kildare and Wicklow accounted for the remaining 5 per cent and 2 per cent of sales respectively.
Commenting on this market activity, Brian Carey, commercial director at Sherry FitzGerald, said: “There are continuing signs of improving confidence in the development-land sector, reflecting the improving interest-rate outlook and a more settled planning and policy environment.”
“On the other hand, there remains an insufficient supply of development land to meet demand. However, the recent strong sales processes for large-scale residential developments by Sherry FitzGerald Commercial give us confidence that, provided developers can get access to larger-scale sites and we continue to see a more settled planning system, the development sector is highly motivated to deliver much-needed housing.”
Commenting further on the actions it believes are needed to address the ongoing shortage of housing supply, Sherry FitzGerald said: “Significantly more work is required to meet the needs of the expanding population, including ensuring an adequate supply of serviced land and the necessary infrastructure to support residential developments. This requires a critical assessment of the quantum of zoned land that can be activated within a reasonable time frame.”
*This article was updated to include two additional transactions that were reported to Sherry FitzGerald following the publication of its research
