Ireland's living sector is on course for its strongest year since the market slowdown, with €1B in investment volumes in reach by the end of 2026, according to agent Knight Frank.

Knight Frank's July Ireland Living Sectors Market report has forecast total investment of between €800M and €1B this year, driven largely by overseas investors targeting professionally managed residential assets.

That would be one of the strongest years for the sector since interest rates began climbing in 2022.

Investment appetite is being reinforced by Ireland's supply-demand imbalance. There were 7,856 new dwelling completions in the first quarter of 2026, a rise of 32.9% on the same three months of 2025 and the highest number of Q1 completions since the series began in 2011, according to the Central Statistics Office. But completions have continued to fall well short of demand in Dublin and, increasingly, across regional cities including Cork, Galway and Limerick.

The report highlighted that international capital has become the primary driver of large-scale residential investment, with U.S. private equity, European pension funds and global institutional investors pursuing opportunities despite planning bottlenecks and elevated construction costs.

Amsterdam-based Redevco this month closed a €57.3M loan to finance the development of a 156-unit residential scheme in Mount Anville, Dublin 14.

Munich Re asset manager MEAG also strengthened its Irish real estate portfolio after acquiring the Seafield Strand apartment scheme in Sutton, north Dublin, for an undisclosed sum, in its fourth investment in the capital in six months.

Although multifamily apartments remain the largest target for institutional investors, the report also identified growing opportunities across other segments of the living space.

Purpose-built student accommodation has continued to benefit from high occupancy rates and sustained demand from both domestic and international students, while single-family rental communities are beginning to attract institutional backing as investors seek to diversify. And senior living remains one of Ireland's least mature but potentially fastest-growing residential sectors, Knight Frank said.