Dublin office rents are forecast to rise by about 10 per cent over the next year with about 80 per cent of the pipeline already pre-let, a new report from property group Knight Frank has found.
The group, which has published its 20th edition of The Wealth Report, said the office market is “resetting on occupational reality”.
The report, which contains a survey covering nearly 300 occupiers and more than 650 million sq ft globally, states hybrid working “has stabilised” while office-first models are “gaining traction”, particularly among financial and professional services firms.
“Leasing activity reflects this in most major markets,” it said. “Global cities are recording new post-pandemic highs as occupiers expand footprints, compete for prime space in supply-constrained locations and reposition portfolios.”
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The report said rental growth “is returning” in core markets and investor demand is following. “Office recovery driven by occupier demand, not sentiment,” the report said.
Knight Frank Ireland chief economist Joan Henry said prime Dublin office rents are forecast to increase by 10 per cent over the next year, driven by “the fundamental dynamic of increased demand at a time when the supply pipeline continues to tighten”.
“For example, 80 per cent of the office space that is due to complete in the Dublin market throughout the rest of 2026, [covering] 1 million sq ft, is already pre-let,” she said.
“A number of prime office assets, in excess of €100 million lot sizes which are currently on the Dublin market will test the depth of investor demand and also current prime yields, at 5 per cent.”
The report said there has been “a clear turning point” for global commercial property as $144 billion (€122.7 billion) of institutional capital prepares to re-enter the market in 2026.
“The shift comes with private capital still firmly in the lead across the globe,” the report said.
“Investors including high net worth individuals and family offices have now been the largest buyers of global commercial real estate for five consecutive years, deploying $464 billion (57 per cent) in 2025 compared [with] $347 billion (43 per cent) from institutional investors.”
Henry said commercial property investor activity in Ireland “largely reflects this global trend”, with total investor spend in the past three to five years split almost evenly between institutional investors and private equity.
“This compares to 10 years ago when institutional investors made up closer to 70 per cent of total investment spend,” she said.
Knight Frank said the data shows capital is moving on “fundamentals, rather than headlines” and in spite of “current geopolitical risk and policy uncertainty”.
The report said 2026 will favour investors focused on pricing, income and supply rather than short-term volatility.
“Markets such as Ireland, the UK and other European countries continue to attract strong interest despite negative sentiment, underlining the disconnect between perception and capital allocation,” the group said.
