- Following a strong recovery in 2024, development land market activity remained buoyant in H1 2025 with €284m transacting. This represented a 20% increase compared to the €238m that traded during the same period last year.
- While there were no deals recorded in excess of €50m in H1 2025, there was a significant increase in activity in the €20-€50m bracket which accounted for 50% of spend in H1 2025, up from 20% in H1 2024.
- Residential development land dominated activity in H1 2025 accounting for 63% of spend. The Land Development Agency acquired four of the top five residential transactions which have the capacity to deliver at least 4,200 units between them.
- A number of homebuilders were also active, primarily targeting smaller and medium-sized residential sites in the €5m-€15m range. The PLCs, as well as Ireland’s largest housebuilders, currently have substantial requirements which we expect will add significantly to volumes in H2 2025.
- The publication of the National Planning Framework Guidelines on Housing Growth and Zoning Requirements, as well as infrastructural commitments in the National Development Plan, have provided optimism that much needed zoned and serviced development land will begin to be freed up. These measures could accelerate a pivot that is already underway in the market whereby there is a growing interest amongst developers in acquiring longer-term lands.
- Sentiment and activity have also been supported by revised standards for apartment development and reforms to rent pressure zone legislation. Both of these measures could help kickstart apartment construction as it is widely recognised that Ireland needs to be building at least three times the number of apartments that were constructed last year if it is to hit the revised housing targets.
- Finally, 32% of spend in H1 2025 was comprised of commercial development land sales. Sites capable of delivering industrial and health-related schemes were especially sought after.
Robert O’Connor, Associate Director, Research, Knight Frank Ireland
For a full copy of this report, please contact
Joan.Henry@ie.knightfrank.com
or Robert.OConnor@ie.knightfrank.com