Knight Frank’s latest Ireland Development Land Report reveals that €389m worth of development land transacted in H1 2026, a 37% increase on the €284m recorded during the same period last year, with this uplift primarily driven by two large-scale commercial and mixed-use transactions.
These included Dublin City Council’s acquisition of Camden Yard and Live Nation’s purchase of Merchant’s Yard, which together totalled approximately €180m and accounted for almost half of all spend during the period.
The report also highlights growing investor and developer interest in hospitality-led development opportunities in Dublin, supported by constrained supply and consistently high occupancy levels. One of the more notable transactions was the sale of the Former Royal City of Dublin Hospital on Upper Baggot Street for in excess of €9.0m.
Residential sites accounted for €166m worth of spend during H1 2026, broadly in line with the €179m recorded during H1 2025, while the number of transactions remained unchanged at 20 deals.
Commenting on the findings, Robert O’Connor, Divisional Director, Research at Knight Frank, said: “The buyer pool remained broad-based in H1 2026. A number of new entrants also entered the market demonstrating the depth of demand and broad range of capital targeting Irish residential development land opportunities.”
Housebuilders remained active, with several notable transactions demonstrating the continued appetite for well-located sites with planning permission. This included the sale of off-market lands in Ratoath, with planning for 350 units, for €26m. State agencies continued to pursue sites of scale with the Land Development Agency acquiring the former KSG lands in the Jamestown Industrial Estate in Finglas, which has the potential to deliver 600 units, for in excess of €20m.
Activity in H1 2026 also highlighted a continued appetite for longer term lands – those yet to secure planning permission, including unzoned and strategic reserve sites. This has been supported by efforts to increase the supply of zoned land through the Section 28 Directive, enhanced funding for enabling infrastructure and site servicing and signs that planning approval timelines have begun to improve under the Large-Scale Residential Development process.
In terms of the outlook, the report notes that approximately 40,000 homes are expected to be completed nationally in 2026, rising to potentially 43,000 in 2027.
O’Connor added: “The medium-term outlook for housing output remains more challenging, however. Commencements and planning permissions are currently tracking below the levels required to support a sustained increase in delivery, highlighting the importance of activating both the substantial stock of permissioned housing and sites capable of supporting higher-density apartment development.” While recent measures, including amendments to Rent Pressure Zone regulations, the reduction in VAT on new apartment construction, proposed changes to apartment design standards, and the Croí Cónaithe Cities Scheme, have the potential to improve viability and support greater private sector participation, ongoing policy support will be required, particularly in light of the recent geopolitical instability caused by the US-Iran conflict which has contributed to upward pressure on both construction costs and financing rates, creating additional headwinds for apartment development.