Investment volumes in the Irish commercial property market are expected to climb throughout 2026, according to the latest Ireland Investment Market – Review and Outlook from Savills.

The forecast suggests that a combination of predictable interest rate expectations and a robust domestic economy will release pent-up activity across the sector.

While the total investment of €2.4 billion recorded in 2025 remained consistent with previous year-on-year figures, it sat 40% below the 10-year average of €4.0 billion. However, a strong performance in the final quarter, which saw transactions totalling €796.6 million, indicates an upward trajectory moving into the new year.

A primary factor for the optimistic outlook is the current stability of interest rates. This environment allows investment managers to underwrite and complete deals with greater certainty compared to the volatility experienced between 2022 and 2024.

John Ring, Director of Research at Savills Ireland, commented: "One the most promising aspects of the current market is the stability of the interest rate outlook. It gives investment managers confidence that future path of interest rates will remain predictable and stable from initial deal sourcing and underwriting through to bidding and completion. This helps the market to arrive at a consensus, narrowing bid-ask spreads and facilitating deal flow."

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Institutional investors reached a record 62% share of acquisitions in 2025. European buyers led the market at 36%, followed by the US at 25% and Irish domestic buyers at 24%. French SCPI funds were notably active in the mid-market segment, contributing a record €342.1 million—a 30% increase year-on-year.

Sector highlights from the report include:

• Retail: Maintained the largest market share for the second year at 30%.

• Offices: Showed a recovery to 27% of volumes, up from 20% in 2024.

• Residential: Rose to 24% of the market, supported by a partial recovery in Purpose-Built Student Accommodation (PBSA) and Private Rented Sector (PRS) investment.

The structural transformation of Ireland's market since 2012 has created a more geographically diversified capital base, which experts believe makes the current market more resilient than in previous cycles. Additionally, Ireland's domestic economy remains strong, with Modified Domestic Demand growing by approximately 3.9% in 2025.

Kevin McMahon, Director, Investments at Savills Ireland, added: "We are seeing the foundations for a more active year ahead. There is capital ready to deploy, particularly from institutional and continental European investors, and the return of larger lot sizes is encouraging.

"Crucially, the market structure today is fundamentally more resilient than it was pre-GFC. Ownership is more diversified by geography and investor type, and that depth of capital will support liquidity as sales by private equity materialise. We expect 2026 to mark the beginning of a more normalised investment cycle, with increased price transparency and stronger deal flow, particularly in sectors where income growth prospects are robust."