Ireland’s economy is forecast to grow by around 10 per cent in 2025, inflation is projected to remain contained, while the labour market is expected to continue expanding. The outlook for the State’s public finances is positive, albeit with some risk to corporation tax revenues as our economy navigates policy shifts in the US.
These factors have all helped in delivering positive sales data. On a national basis, retail sales in volume terms increased by 3.5 per cent in the 12 months up to September 2025, with the equivalent figure in value terms up by 4.6 per cent.
Occupier demand
Dublin city centre continues to remain an important destination for international occupiers. Occupancy rates have remained strong, with nominal vacancy levels in all prime or next-to-prime city centre locations. Demand is across all retail sectors and sub sectors, from national and international retailers. These cover new market entrants and existing retailers expanding their retail footprint. They also include restaurant groups competing for the limited available retail stock.
Retail-occupier activity
Grafton Street leads the way yet again with an international flavour to this year’s letting activity. Kiko Milano (Italy), Mango (Spain), Lovisa (Australia), Pampling (France), Build-A-Bear (USA), Iris Galerie (France) and Subdued (Italy) were among the international brands that opened for business in Ireland’s premier retail destination. Monsoon Accessorize, Dylan Oaks and Austen & Blake all opened on Henry Street early in the year. They have been joined recently by market entrant Normal, the Danish variety store chain, which has opened at the former River Island store.
RM Block
Off Grafton Street, another retail debutant, Arket, finally opened for business at the junction of Nassau Street and Dawson Steet in the Grafton Place development. Trade so far has been positive for this H&M-group-owned brand and the balance of the available retail space within the development has already been reserved. Another notable opening was the luxury Swiss watch brand, Longines, which opened on Wicklow Street.
Food & Beverage
This was a strong year for restaurant openings. The most notable include Gloria Osteria (part of the Big Mama Group) on Westmoreland Street, The Ivy Asia on Dawson Street and DÍON in the spectacular rooftop space at Central Plaza on Dame Street.
Rents
Prime Grafton Street Zone A rents are about around €5,380 per sq m (€500 per sq ft), with Henry Street/Mary Street at approximately 50 per cent of this level. Both are lagging behind pre-Covid 2020 levels.
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Outlook
There is no evidence of economic headwinds stymieing growth or of waning occupier demand (international and domestic). In fact, the opposite is the case. There are several leasing transactions in train, and we expect some significant deals to complete with a number of interesting letting announcements likely in the first and second quarters of 2026.
Low vacancy levels and a lack of availability will put upward pressure on rents in the near term. This is a global trend and not unique to Dublin. We think rental growth will be more pronounced in Grafton Street and off Grafton Street locations. Henry Street/Mary Street is behind its southside counterparts, but this is set to change as it will benefit from several store openings including a flagship Sports Direct and what is reputed to be the largest Zara store in Ireland.
Eoin Feeney is director of Colliers retail division
