€2.4bn invested in Irish commercial property in 2025 as volumes sit 40% below long-run average
In advance of Ireland pitching to international investors at MIPIM 2026, €796.6m transacted in Q4 with institutions accounting for 62% of acquisitions
20 February 2026 | editor@irishrealestate.news
In advance of Ireland pitching to international investors at MIPIM 2026, new data from Savills Ireland shows commercial property investment volumes reached €2.4 billion in 2025, 40% below the 10-year annual average of €4 billion.
According to the firm’s latest Investment Market Review and Outlook, annual volumes were broadly unchanged year-on-year. However, activity strengthened in the final quarter, with €796.6 million transacting in Q4 alone. Savills expects this improved momentum to continue through 2026, supported by stable interest rate expectations and resilient domestic economic growth.
Institutional investors accounted for 62% of acquisitions in 2025, the highest share on record, reflecting the continued evolution and diversification of Ireland’s capital base. European investors were the most active buyers, responsible for 36% of total purchases, followed by US investors at 25% and Irish buyers at 24%.
French SCPI funds were particularly active in the mid-market segment. They accounted for 35% of transactions in the €20 million to €50 million range and 27% of deals between €5 million and €10 million. Total investment by French SCPIs reached a record €342.1 million, representing a 30% increase year-on-year.
By sector, retail led the market for a second consecutive year, accounting for 30% of total volumes, significantly above its 10-year average of 21%. Office investment recovered to 27% of volumes, up from 20% in 2024. Residential accounted for 24%, supported by a partial recovery in private rented sector and purpose-built student accommodation transactions.
Savills reported that yield tightening resumed across most sectors during the second half of 2025. The firm also pointed to estimated Modified Domestic Demand growth of 3.9% in 2025 and a narrowing sovereign bond spread over Germany as indicators supporting a more active and normalised investment cycle in 2026.
