Getting Your Garden Summer Ready

 

“Resurgence in commercial sector drives €28.7 billion capital flows into Irish property during 2024.”

Statement by Sherry FitzGerald Commercial Research 

Tuesday, May 20th, 2025

Sherry FitzGerald, Ireland’s largest estate agent, reported today (Tuesday May 20th, 2025) that capital flows into the Irish property market totalled €28.7 billion in 2024. This represents a robust 13% increase on the €25.5 billion recorded in 2023. Improvements in capital spend were seen across the commercial and residential property sectors.

Commercial property witnessed a particularly strong resurgence in 2024, with capital flows[1] expanding by 75% year-on-year to €4.5 billion. This rebound also surpassed the €4.3 billion recorded in 2022. 

There was a notable improvement in direct commercial investment in 2024, up 39% to approximately €2 billion, while development land transactions grew significantly to reach almost €1.1 billion from €392 million the previous year. The hotel sector saw unprecedented levels of investment, setting a new record level of capital spend at €939 million.

The residential market[2] continued to dominate, accounting for 84% of total capital flows in 2024 or €24.2 billion. This follows 6% growth during the year, following relatively no change the previous year. Household purchasers accounted for €19.7 billion of this, a 5% increase on the 2023 level. 

Total spend by non-household entities including institutional investors, local authorities and Approved Housing Bodies rose by 10% to €4.5 billion. That said, it remained 10% below the 2022 level. Despite the improvement in 2024, investment by the Private Rented Sector (PRS) at just €246 million was the weakest level seen since 2017, while there was no forward fund or forward commit PRS transactions reported in 2024. It is likely that this shift away from PRS activity was largely offset by increased activity by the State and Approved Housing Bodies. Investment in student accommodation was also very robust in 2024 at €230 million. 

According to Jean Behan, Senior Economist and Head of Research, Sherry FitzGerald; “The significant improvement in capital flows during 2024 reflected renewed confidence in the commercial market towards the latter half of the year, supported by economic resilience and a downward trajectory in interest rates. The outlook for the year ahead is more uncertain however, as tariffs and future policy changes by the Trump administration weigh heavily on business and investor decisions. That said, borrowing costs are anticipated to ease further in 2025, while the Irish economy is expected to remain resilient.”

Dublin accounted for half of all capital flows in 2024 at €14.3 billion, a 23% increase from 2023. Cork maintained its second-place position absorbing 9% of capital spend or €2.5 billion while Kildare and Wicklow each absorbed 5% of total spend equating to €1.5 billion and €1.3 billion respectively. Meath accounted for 4% of total flows or 41.1 billion, while the regional centres of Galway and Limerick saw total capital spend of €959 million and €689 million respectively. 

Outside of the GDA and regional centres, total capital flows increased by 10% in 2024 to €6.3 billion. However, 11 counties experienced declines in capital spend, with Carlow (-16%) and Kildare (-15%) seeing the steepest reductions. 

Commenting on the market, Brian Carey, Commercial Director, Sherry FitzGerald said “The Irish market is poised for investment with positive signs of recovery in the office market, while vacancy rates in the industrial & logistics and retail markets remain low. Although challenges persist in the residential market, the National Planning Framework and guidance issued by the government to the local planning authorities, will help increase the quantity of zoned land to levels required to meet revised housing targets. In addition, the implementation of the Planning and Development Act will help address inadequacies in the planning system and expedite the delivery of new homes.”

- ENDS -

For any further information, please contact:

Jill O’Neill                                                                              

PR Director                                                                

Sherry FitzGerald Group                                         

Ph: 01 2376 500 / 086 252 3277                  

[1] Commercial capital flows include all commercial property transactions and development land sales valued at €1 million or greater and agricultural land sales.

[2] Residential capital flows include all residential market transactions, residential investment and student accommodation investment.