In October, I attended Expo Real, a European commercial property exhibition based in Munich, where those in the industry get a chance to connect. It’s a big event with about 42,000 participants. My focus was to meet those interested in (or already) investing in, or those providing finance for, commercial property in Ireland.
Some years it can be hard to get meetings, as investors’ focus can be on other countries. This year, over two days I met 22 people, with further calls arranged for those I couldn’t meet in person. At a high level, it is clear that international capital is back looking at and buying in Ireland. That’s not to say the market is without its challenges, but there has been a gradual improvement in investor confidence and this is translating into real activity across all sectors.
The office market remained subdued during the first half of 2025, but by year end a number of notable deals have been completed or are agreed. These include Iput’s sale of 1, 2 and 3 Shelbourne Buildings to Arkea REIM and Remake SCPI; Kennedy Wilson’s sale of 20 Kildare Street to Deka and their sale of Ten Hannover Quay to Pontegadea; MEAG’s purchase of 2 Dublin Landings; Credit Suisse’s sale of 76 Lower Baggot Street to Lanthorn; Corum’s purchase of 30 Herbert Street and 24/26 City Quay, both bought from Irish Life Investment Managers; and Ardvest’s purchase of Blocks A and D Ashtown Gate, and 3 and 5 Custom House Plaza.
Further deals were agreed on One Grant’s Row, The Hive in Sandyford; One Haddington Buildings in Ballsbridge; Macken House in the IFSC; and the Beckett Building on East Wall Road, as well as a handful of off-market transactions. It’s clear the negativity around office property is reducing, with rental growth now accepted as inevitable and an increase in occupier demand. For 2026 we expect a lot more activity in this sector, and won’t be surprised to see a downward shift in yields for prime city centre offices.
RM Block
Industrial
Over the past few years, there has been strong conviction from investors towards Irish industrial property, with a lack of opportunity being the real barrier to meaningful activity. We waited for some time, then suddenly three sizeable portfolios were offered to the market in the autumn. Iput’s North Gate Portfolio is now sale agreed and, at the time of writing, Exeter’s portfolio and Henderson Park’s Horizon Logistic Park are moving into second-round bids, with good traction/interest.
If all three portfolios trade, this will amount to about €800 million of industrial assets transacted. Some of these sales will carry through to 2026 and so it should be a record year for industrial-asset sales, albeit from very few transactions. There’s still plenty of appetite from value-add investors in this sector too, but we expect a number of core opportunities to be offered for sale during the year.
The private rented sector (PRS) market is likely to see much better activity in 2026 and is an area with high conviction. The Government’s refocused approach towards solving our housing emergency has been well received by investors, although viability in certain locations is still an issue. It’s likely that Ardstone’s purchase of Spencer Place and Birchwood Court late this year will be perceived as prescient.
Similarly, on the retail front, there’s good demand for retail warehousing assets from international capital, but limited opportunity. The sale of the Jervis Centre also demonstrated the depth of buyers for shopping centres, which many would have thought were less liquid. Private investors are dominating the activity in high street, particularly for well-located problem-free buildings. The numbers of active buyers in this space are encouraging, and we can’t see any reason for this to change.
As we end 2025, there’s significant momentum across most sectors. It appears the disparity between vendors’ expectations and what buyers will pay is negligible.
There are still headwinds, and not all property is the same, but there’s more reason to be positive. Who knows, maybe next year Expo Real will move to Dublin?
James Nugent is a senior director at Lisney
