- Residential investment spend was relatively strong in Q1, representing 54% of total investment (€621m).
- While deal volumes were low, transactions focused on multi-family and social housing/public sector purchases.
- Increased investor caution in Q1 hampered further transactions at a time when demand continues to significantly outpace the supply of units being delivered to the market.
- Strong demand for residential assets in Ireland and across Europe is expected in 2023, with the timing of transactions to continue to be disrupted by current debt market challenges.
- Smaller lot sizes and income producing assets are expected to be the most sought after, while yields are expected to move out in the short-term reflecting current liquidity in the market.
Joan Henry, Chief Economist & Director of Research, Knight Frank Ireland