Retail dominates half of Ireland’s 2024 investment 

Investment in Ireland’s real estate market has reached €2.4bn (£1.9bn) in 2024, marking a 30% increase from 2023 but 42.7% below the 10-year average, according to JLL.  The retail sector dominated the market, accounting for 43.5% of the total volume, equivalent to £869m across 31 transactions and an increase of 142% on 2023 levels and 42.9% above the 10-year annual average. Meanwhile, the office and private rental sectors continued to face persistent challenges. Investment in the office sector reached £420m across 37 transactions, representing a decline of 62.3% compared with the 10-year annual average, highlighting the ongoing challenges posed by the post-pandemic landscape. PRS saw a slight increase, with £381m invested, up 6.1% year-on-year but still 55.3% below the 10-year annual average. The industrial sector recorded £220m across 19 deals. However, limited market opportunities led to a 48.4% decline from 2023 levels. In total, 108 deals were completed in 2024, slightly fewer than the 109 recorded in 2023 and 38% below the 10-year annual average. Sandra Walsh, associate director in JLL Ireland capital markets, said: “Despite the increase in year-on-year volumes, investor inertia persisted, particularly in core money. However, we see reasons to be optimistic as macroeconomic conditions continue to stabilise as we enter 2025. The return to growth will likely take greater momentum as the year progresses.” Niall Gargan, head of research Ireland, said: “Investor sentiment is improving. 53% of investors surveyed in November 2024 anticipated improved market conditions over the next six months, up from just 32% when surveyed a year before in November 2023.” “Investors deploying capital in 2025 are likely to see an early-mover advantage in terms of returns that will diminish as this new cycle matures. Intensifying supply shortages as completions slow in 2025, especially with offices, will amplify competition for quality existing assets as more investors re-enter the market”, Gargan added. “We are already seeing signs of a new liquidity cycle. More capital is showing up to the table and bidding on opportunities, and institutional investors are returning to the market with a renewed appetite for real estate”