A total of €394 million was invested in the Irish commercial property market in the second quarter of 2025, taking the total spend for the year to date to just over €940 million.
While the figures for the first six months of 2025 are less than half the 10-year historical average spend of €1.9 billion, commercial real estate adviser CBRE says it sees “clear signs” that investment is continuing to recover gradually from the lows of 2023 and 2024. CBRE says investors are “now more actively assessing opportunities in the Irish market”. They believe this interest is being driven by the series of cuts to ECB interest rates which have taken place since June 2024.
The most valuable transaction in the second quarter saw US investor Realty Income Corporation paying €123.5 million for the Trinity Collection, a portfolio of three retail parks comprising Belgard Retail Park in Tallaght, Dublin 24; the M1 Retail Park in Drogheda, Co Louth; and Poppyfield Retail Park in Clonmel, Co Tipperary.
Realty’s acquisition of the portfolio from developer Pat Crean’s Marlet Property Group and its funding partner M&G Investment follows on from its purchase in the first quarter of a portfolio of eight Irish retail parks from Oaktree Capital Management for €220 million.
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While the retail sector accounted for the most valuable transaction in the second quarter, the office sector proved to be the most attractive to investors overall, accounting for nearly 50 per cent of the €394 million spent.
The largest office deal of the quarter saw German investor Deka Immobilien continue its expansion in the Dublin office market by acquiring 20 Kildare Street from US real estate firm Kennedy Wilson for €74.5 million. The second prime office transaction saw Pontegadea, the Spanish family office of Zara founder Amancio Ortega, acquire Ten Hanover Quay in the south Dublin docklands from Kennedy Wilson and Nama at a price of €69 million.
Although investors around Europe are focused on the “living” sectors, comprising the private rented sector (PRS) and purpose-built student accommodation markets, no institutional-grade residential transactions closed in the Irish market in the first half of the year. CBRE says, however, that several significant sale processes are progressing, which it believes should offer a firm indication of pricing for PRS assets in the Dublin market.
Commenting on the latest investment figures, Kyle Rothwell of CBRE said: “It was hugely positive to see two prime office transactions close this quarter in Dublin, attracting some of the most competitive core capital in Europe, which is a sure sign of confidence for the office investment market.”
