Ireland’s commercial property investment market recorded its strongest first-half performance since interest rates began rising in 2022, with transaction volumes reaching €1.4bn during the first six months of 2026, according to the latest report from Savills Ireland.
Investment activity gathered pace during the second quarter, with deals worth €956m completed between April and June.
That represented a 150% increase on the same period last year and brought quarterly activity back in line with the market’s 10-year average, signalling a recovery after several subdued years.
A total of 24 transactions were completed during the quarter, producing an average deal size of €40m – the highest level since the second quarter of 2022.
The figures were boosted by the sale of the Horizon Portfolio in north Dublin by Henderson Park to a joint venture between GIC and Valor for a reported €485m.
The landmark transaction accounted for around half of all investment activity during the quarter and is understood to be the largest logistics property investment ever completed in Ireland, as well as one of the country’s 10 largest commercial real estate deals since 2012.
John Ring, Director of Research at Savills Ireland, said the latest figures suggest confidence is gradually returning to the market following the sharp repricing triggered by higher interest rates.
“Quarterly investment volumes returned to their long-term average in Q2, lifting first-half transaction activity to its strongest level since 2022.
“That was the point at which rising interest rates triggered a significant repricing across commercial real estate markets.
“While heightened geopolitical and macroeconomic uncertainty continues to act as a headwind to a broader-based recovery, recent activity suggests that investors are becoming increasingly comfortable transacting within the current pricing environment.
“If momentum is maintained through the second half of the year, annual investment volumes are likely to reach around €3bn.”
Savills said Ireland continues to attract strong interest from international investors, particularly for high-quality assets.
Kevin McMahon, Director of Investments at Savills Ireland, said buyers remain selective but are increasingly willing to commit where pricing reflects market conditions.
“Ireland continues to attract significant international capital for high-quality assets.
“Investors remain reasonably selective, but where the fundamentals are strong and pricing is aligned with market expectations, there is substantial appetite from both domestic and overseas buyers.”
He added: “Institutional investors continue to dominate the market, while improving liquidity is creating opportunities across a broader range of sectors.
“We are seeing increased engagement from buyers who had been sitting on the sidelines, and that is translating into a healthier pipeline of transactions for the remainder of the year.”
Despite ongoing geopolitical uncertainty and elevated interest rates, the report noted that prime office and private rented sector (PRS) yields compressed by 10 basis points during the quarter, reflecting continued demand for premium assets.