Irish commercial property investment volumes are forecast to increase in 2026, according to a new report from Savills.
The estate agent said stable interest rate expectations and resilient domestic economic growth are combining to “unlock activity across the market.”
In its latest Investment Market Review and Outlook, Savills said while total investment activity in 2025 reached €2.4 billion, “it was broadly unchanged year-on-year and 40% below the 10-year average of €4 billion”.
It said momentum strengthened in the final quarter of last year, with €796.6m transacting in the fourth quarter alone and Savills said it “expects this improving trajectory to continue through 2026”.
Director of Research at Savills Ireland, John Ring, said one of the most promising aspects of the current market is the “stability of the interest rate outlook”.
“It gives investment managers confidence that future path of interest rates will remain predictable and stable from initial deal sourcing and underwriting through to bidding and completion.”
He said it helps the market to “arrive at a consensus, narrowing bid-ask spreads and facilitating deal flow”.
“This is in sharp contrast to the volatility witnessed between 2022 and 2024, when repeated inflation adjustments led to uncertainty with regards interest rates and hamstrung activity.”
Savills said institutional investors accounted for 62% of acquisitions last year, which represented their highest share on record.
The company said the figure underlines the “increasingly diversified nature of Ireland’s capital base”.
The report said European investors were the most active buyers, accounting for 36% of the purchases, followed by US and Irish buyers at 25% and 24% respectively.
