Capital returns, but stock remains scarce.
Larger lot sizes trading in the office, logistics and living sectors, have boosted investment volumes, which were 55% stronger in the first half of 2026 compared to the same time period last year. Combined with capital availability, which is continuing to improve, competition for institutional quality assets has solidified.
This has already contributed to yield compression for prime assets, particularly those offering scale, strong sustainability credentials and a convincing occupational story.
“At this point in the cycle, the availability of prime stock is likely to be a more significant constraint on activity than investor demand through the remainder of 2026 and into 2027”, said Joan Henry, Chief Economist & Director, Research, Knight Frank Ireland.
The two largest transactions that completed in the first half of the year involved Singaporean Wealth Fund, GIC.
“The largest, which was the acquisition of the Horizon Logistics Park for close to €500m was completed by GIC and Valor. The purchase of Newmarket Yards, a living sector asset for €212m, was completed solely by GIC”, John Earley, Divisional Director, Capital Markets, Knight Frank Ireland.
The availability of larger lot sizes to the market, supported by positive occupier fundamentals, has increased Ireland’s attractiveness to international capital. This is in turn being supported by a continued uncertain wider global backdrop which is increasing Ireland’s attractiveness as a more safe-haven location for investors.
Activity for the rest of 2026 is expected to continue to reflect these wider global trends, with total investment volumes for the year to be determined by the availability of large-scale assets.
Occupier fundamentals remain a key source of investor conviction
Strong occupational market dynamics are increasingly shaping investment decisions across the Irish market. In the office sector, take-up reached almost 1m sq ft in the first half of the year, while space with sustainable credentials reflected 60% of total leasing activity, supporting rental growth and reinforcing investor confidence in prime assets. Within the logistics sector, vacancy remains near historic lows at close to 3% with prime rents forecast to increase by 5% over the coming twelve months as occupier demand continues to outpace available supply.
These favourable occupier fundamentals are providing investors with greater conviction around future income growth and are increasingly influencing capital allocation decisions.
Greater pricing certainty should support disposal decisions
The Irish investment market has moved beyond the period of price recalibration that characterised recent years. The larger transactions that closed in Q2, have provided valuable pricing benchmarks improving market transparency and reinforcing confidence in underlying values.
As market conditions continue to stabilise, Knight Frank project pricing expectations between buyers and sellers to align further. This greater level of certainty will reduce execution risk for prospective vendors and should support more informed disposal decisions.
“However, pricing trends are expected to remain increasingly bifurcated, with non-core assets expected to remain more sensitive to asset-specific risk, resulting in a more selective and differentiated pricing environment”, said Earley. “Combined with a deep pool of active capital, increased certainty is expected to encourage additional assets to come to market.