Irish commercial property investment set to rebound in 2026

Irish commercial property investment volumes are set to rise in 2026 as stable interest rate expectations and resilient economic growth help unlock activity across the market, according to new research from Savills Ireland. In its Ireland Investment Market – Review and Outlook 2026, the firm reports that total investment activity reached €2.4bn in 2025. While broadly unchanged year-on-year, this figure remains 40% below the 10-year average of €4.0bn. However, momentum strengthened in the final quarter of the year, with €796.6m transacting in Q4 alone — a trajectory Savills expects to continue through 2026. John Ring, Director of Research at Savills Ireland, said the stability of the interest rate outlook is one of the most promising features of the current market. Greater predictability, he noted, allows investors to underwrite deals with more confidence, narrowing bid-ask spreads and facilitating transaction flow. This marks a sharp contrast to the volatility between 2022 and 2024, when repeated inflation adjustments created uncertainty and curtailed activity. Institutional investors accounted for 62% of acquisitions in 2025 — their highest share on record — underlining the increasingly diversified nature of Ireland’s capital base. European buyers were the most active, responsible for 36% of purchases, followed by US and Irish investors at 25% and 24% respectively. French SCPI funds were particularly influential in the mid-market segment. They accounted for 35% of transactions between €20m and €50m, and 27% of deals between €5m and €10m. Their total investment reached a record €342.1m, up 30% year-on-year. By sector, retail led the market for a second consecutive year, accounting for 30% of volumes — well ahead of its 10-year average of 21%. Offices recovered to 27% of volumes, up from 20% in 2024, while residential increased to 24%, driven by a partial recovery in PRS and PBSA investment. Yield tightening resumed across most sectors in the second half of 2025. John Ring, Director of Research at Savills Ireland. Photo Chris Bellew /Fennell Photography Savills also highlighted the structural transformation of Ireland’s capital base since 2012, with institutional investors and private equity emerging as the largest net purchasers. Combined with estimated Modified Domestic Demand growth of 3.9% in 2025 and a narrowing sovereign bond spread over Germany, the firm believes the foundations are in place for a more normalised and active investment cycle in 2026.

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