The word I have used most often in 2025 to describe the investment market in the Republic is “patchy”.
Demand and liquidity remain inconsistent and investors remain somewhat cautious. This is perhaps unsurprising as we continue to adjust to a new real estate cycle following recent seismic global events such as the pandemic, conflict and the economic aftershock of negative interest rates and high inflation.
What is evident as 2025 has progressed is clear and solid progress being achieved in terms of sentiment and, in turn, market activity and transactions. Investment decisions are once again being taken. Keeping with the positives, the Republic continues to be attractive to foreign capital, and investment here is well balanced globally. By the end of Q3, 2025, investment spend here has reached €1.63 billion across 80 transactions. Thirty-seven per cent of this spend was of European origin (including 18 per cent from France), 29 per cent was domestic, 21 per cent was via the US and 6 per cent was from the United Kingdom. A typically strong Q4 is expected to take investment spend north of €2.5 billion, an increase on 2024, but activity remains below the 10-year average spend of €4.1 billion.
Examining the market on a sector-by-sector basis, industrial and logistics transactional activity has been limited to date in 2025 due to an absence of supply, but the sector remains strongly favoured by investors. A strong reversionary or rental growth story aids this. We expect a strong rebound in logistics activity before the year’s end, with a number of transactions under way. New-cycle new money and established sector specialists are jostling with new market entrants in the Horizon Logistics Park sale by Henderson Park, the Project Liffey Portfolio sale by EQT and the North Gate Portfolio sale by Iput.
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Recovery and momentum in the office sector continue to build and are expected to carry through to the year’s end and into 2026. Notably, core money has returned in the shape of Deka’s acquisition of 20 Kildare Street and Pontegadea’s acquisition of Ten Hanover Quay. The French SCPIs [real estate investment vehicles] and others have taken advantage of repricing in Dublin’s central business district, which accounted for 68 per cent of total office spend in the State to the end of Q3.
Office vacancy levels in Dublin have peaked, and competitive demand has returned for modern income-producing office assets. This will inevitably encourage more risk-taking by investors within the office sector in 2026.
After a strong year-to-date performance, supply constraints are evident in the retail sector, within both the retail park and shopping centre segments. Realty Income have emerged as perhaps the dominant player in the retail park market following their acquisition of the Trinity Collection portfolio from Marlet and M&G. Will this encourage further retail park sales in 2026? Retail high street sales showed strong liquidity in 2025 and we expect strong private investor demand to persist into 2026.
Finally, limited supply will affect the residential sector turnover for the foreseeable future, with activity restricted to standing stock. Transactional activity in 2025 was dominated by Ardstone’s acquisition of two private rental sector schemes (PRS) at Spencer Place, Dublin 1, and Birchwood Court in Santry, Dublin 9.
German funds have returned in force to the sector with MEAG under offer on their first PRS acquisition in Dublin and Commerz Real & Catella have also entered the purpose-built student accommodation market here with acquisitions in Dublin 7 & 8 respectively. Yields returning to sub-5 per cent levels will present a tempting exit window in 2026 for many existing developers and investors.
