Activity in the development land market during 2025 remained broadly in line with last year, with total volumes to the end of the third quarter of approximately €340 million – which is very similar on a year-on-year basis. The final quarter is traditionally the most active period, and 2025 is expected to follow that pattern, with a number of transactions agreed or in legals that should complete before year-end. Again, the majority of deals (77 per cent) related to residential-land sales.
One of the standout transactions of the year was Project Shoreline in Baldoyle, a significant landholding sold by Savills to the Land Development Agency (LDA) with existing planning permission for more than 1,900 homes. The site sits adjacent to Project Capital North in Clongriffin, with potential for a further 2,000-plus units, further strengthening the regeneration momentum in that part of north Dublin.
Market sentiment has mirrored broader trends across the real estate sector. Housing land remains in short supply and continues to attract intense interest. Purpose-built student accommodation (PBSA) sites are also performing well, particularly those with planning permission and located in central areas where demand remains strong. By contrast, commercial land trades have been limited this year as elevated construction costs continue to weigh on office development viability. This will restrict new supply over the short term and, in time, is likely to contribute to upward pressure on prime office rents.
There has also been an uptick in interest levels for apartment sites throughout Dublin, both with and without planning. One noticeable trend in particular is the demand for well-located apartment schemes, in particular those that have a full grant of planning, with many developers looking to avail of the Government’s Croí Cónaithe scheme, a fund that aims to bridge the viability gap between the cost of building and the sale price of each unit, so long as the units are sold to owner-occupiers.
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As was the case throughout previous years, supply continues to be the most influential factor shaping the market. The Minister for Housing’s decision earlier in the year to revise the National Planning Framework and direct local authorities to release more land for housing is one of the most important policy steps taken in recent years.
A number of other notable policy initiatives have also been introduced by Government. The reduction in VAT for apartment construction is also expected to support viability and encourage an uplift in activity. The continued involvement of State-backed bodies, particularly approved housing bodies (AHBs) and the LDA, remains a central feature of the landscape.
One of the more noteworthy developments during the year was the publication of a revised Design Standards for Apartments, Guidelines for Planning Authorities, which aimed to improve viability. While these guidelines reinstated elements of the 2018 Build to Rent framework, along with many other positive measures, they have since been subject to judicial review by several councillors, and the outcome will have an important bearing on investor confidence and construction activity.
The planning system, while still challenging, has shown some signs of gradual improvement this year, with certain applications moving through the process more efficiently. Even with that progress, a number of lenders continue to take a cautious approach to sites without planning permission, particularly given the increased scrutiny around judicial reviews and the operational risks associated with early-stage development sites. The adoption of remaining elements of the new Planning and Development Act, particularly those addressing judicial review processes, will be critical in not only further restoring confidence among funders and international capital, but also significantly reducing delays around proposed critical infrastructure projects.
Infrastructure constraints, most notably relating to water and wastewater capacity, continue to be a significant barrier to development, so the Government’s announcement of additional infrastructure funding and the establishment of the new Housing Activation Office is a welcome intervention.
Looking ahead to 2026, the outlook is shaped by the significant supply-demand imbalance in housing. If additional lands are rezoned for residential use, activity levels should increase materially. The Residential Zoned Land Tax (RZLT) is another factor, as it has introduced an annual charge of 3 per cent of the land value unless construction has commenced. This is already encouraging movement on some sites and is likely to influence behaviour further next year.
John Swarbrigg is a director in the development land division at Savills Ireland
