Ireland's commercial property investment market has recorded its strongest first half since the upward interest rate cycle commenced in 2022. Transaction volumes reached €1.4 billion during the first six months of 2026, according to the latest Savills Ireland Investment Market Overview.

Investment activity experienced an acceleration during the second quarter, with €956 million in transactions completing. Although this marks a 150 per cent increase compared to the corresponding period last year, quarterly volumes remained broadly in line with the long-term 10-year average, highlighting the extent to which activity had been subdued over the preceding three years.

A total of 24 transactions were completed during the quarter, generating an average deal size of €40 million—the highest level seen since Q2 2022. This figure was heavily influenced by a single landmark transaction: the sale of the Horizon Portfolio in north Dublin by Henderson Park to a joint venture between GIC and Valor for a fee understood to be in the region of €485 million. The deal accounted for roughly half of the total quarterly investment volumes, representing the largest logistics investment ever recorded in Ireland and ranking among the ten largest commercial real estate deals completed since 2012.

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Despite ongoing geopolitical uncertainty and interest rate pressures, Savills noted that prime office and PRS yields both compressed by 10 basis points during the quarter, pointing to sustained demand for best-in-class assets.

John Ring, Director of Research at Savills Ireland, said: "Quarterly investment volumes returned to their long-term average in Q2, lifting first-half transaction activity to its strongest level since 2022. That was the point at which rising interest rates triggered a significant repricing across commercial real estate markets. While heightened geopolitical and macroeconomic uncertainty continues to act as a headwind to a broader-based recovery, recent activity suggests that investors are becoming increasingly comfortable transacting within the current pricing environment. If momentum is maintained through the second half of the year, annual investment volumes are likely to reach around €3 billion."

Kevin McMahon, Director of Investments at Savills Ireland, commented: "Ireland continues to attract significant international capital for high-quality assets. Investors remain reasonably selective, but where the fundamentals are strong and pricing is aligned with market expectations, there is substantial appetite from both domestic and overseas buyers."

He added: "Institutional investors continue to dominate the market, while improving liquidity is creating opportunities across a broader range of sectors. We are seeing increased engagement from buyers who had been sitting on the sidelines, and that is translating into a healthier pipeline of transactions for the remainder of the year."