Irish investment volumes reached nearly €1.7bn (£1.2bn) in the first half of the year, according to figures from Dublin-based consultancy Murphy Mulhall.
The first quarter was particularly strong, with $1bn of deals concluded, followed by a further €671m in Q2.
The total was up year-on-year from £1.6bn.
Dublin remained the major site of investment activity, with more than 61% of all Irish sales occurring in the city. Munster, with 20% of all deals, was the second most active region, and Cork was third with 17% of activity.
Whatever the region, offices were the prime focus of investors, with 35.3% of all deals targeting the sector by volume. By value, offices was by far the largest sector, attracting 67.5% of investment.
Retail, including shopping centres, was also a focus for investors, especially as it was priced more cheaply than the office sector. Some 27.3% of investment transactions were for retail assets, which equated to 17.4% of the total value of purchases.
The Cornerstone portfolio of six shopping centres was the most notable retail deal of the year so far, selling for €115m to Davidson Kempner. The deal was only eclipsed by the purchase of Facebook’s EMEA headquarters at 4 and 5 Grand Canal Square in Dublin, which Union invest purchased for €233m.
Robert Murphy, partner at Murphy Mulhall, said: “Investment demand is being driven by strong occupational markets in the office and retail sectors which, combined with a limited development pipeline, is continuing to underpin rental growth. While domestic buyers continue to see value-add opportunities, sterling and dollar investors have the added advantage of strong currency rates which are boosting spending power.”
