Ireland’s commercial property market saw increased third-quarter investment volumes, with transactions totalling €694M, up 16% on the same period last year and 21% ahead of 2023 levels, according to adviser Savills.

In the first three quarters, investment volumes reached €1.6B, and with what Savills described as a robust pipeline of deals expected before year-end, 2025 could surpass last year’s €2.5B in total transactions.

Despite the rebound, overall activity remains subdued compared with longer-term trends, with Q3 volumes sitting 21% below the five-year average and still well short of the peaks seen in 2021 and 2022.

The residential sector was the star performer in Q3, securing a 37% share of the investment market after three significant deals, including the two largest transactions of the quarter in the private rented sector. Offices followed closely behind, accounting for 35% of total volumes across 12 deals, while industrial assets captured 13%.

Retail, previously a market driver, slowed sharply to 10% in Q3, though it remains tied with offices as the leading asset class of 2025 so far, each holding 31% of the year-to-date share.

Looking ahead, the office sector could overtake retail as the dominant asset type if weaker retail investment volumes persist into the final quarter, according to Savills. However, with three major logistics portfolios on the market, industrial activity may also see a late boost.

Institutional and REIT buyers led transactions in Q3, representing 67% of acquisitions. Irish investors were the most active, responsible for 47% of volumes, followed by European buyers, at 35%.

“The increase in investment volumes in Q3 signals an improvement in Ireland’s commercial property market,” Savills Ireland Director of Investments Kevin McMahon said in a statement. “We anticipate this positive sentiment to be sustained into Q4, with the remainder of the year set to be strong. Overall, 2025 is likely to outperform 2024 in terms of deal volumes, which will mark a second year of improving transactional activity.”