Savills: property investment volumes in Ireland triple in Q1
Ireland’s investment market showed significant improvement in Q1 2025, with total transactions reaching €542.5 million – more than three times higher compared to the same period last year, according to new research by Savills.
“The notable increase in investment volumes this quarter reflects a strengthening investor confidence in Ireland’s commercial property market”, said Kevin McMahon, Director of Investments, Savills Ireland. “The performance of retail and hotel sectors, in particular, underscores international interest due to attractive yields and solid fundamentals. While challenges remain, the market shows signs of stabilisation and gradual recovery.”
Although this marks a strong recovery, transaction volumes remain 27% below the five-year average, indicating room for continued growth toward pre-interest rate hike activity levels.
A major contributor to this increase was the €220 million sale of Oaktree’s nationwide retail parks portfolio to international investor Realty Income, delivering a net initial yield of 7.3%. This key transaction contributed significantly to activity outside Dublin, highlighting growing interest in markets including Cork, Galway, and Limerick.
Retail was the dominant sector in Q1, accounting for half of the total transaction volumes, driven by notable acquisitions on Grafton Street. Hotels represented 16% of the market, with significant activity including Deka’s €86 million acquisition of the Ruby Molly Hotel in Dublin 1. Office sector investments accounted for 15%, reflecting a strategic yet cautious investor approach.
Institutional investors led market activity with a 69% share, driven by favourable income returns and potential for future yield improvement. According to Savills, this reflects confidence in Ireland’s medium-to-long-term economic prospects despite recent volatility.
