The value of investment in Ireland’s commercial real estate market will exceed €3 billion, and potentially reach €4 billion, this year, notwithstanding the ongoing risks presented by global events. That’s the key finding from CBRE in its Outlook 2026 annual report, in which it offers its analysis of the prospects for each sector of the Irish property market for the coming year.
Should investment volumes come in at the upper end of CBRE’s predictions, it would represent a 60 per cent increase on the €2.5 billion spent by investors in 2025.
Commenting on the overall outlook for this year, CBRE head of research Colin Richardson said: “In 2026 we expect Irish real estate to move from stabilisation to a new phase of growth. Values have levelled out, and we’re now seeing early signs of growth across offices, logistics, retail and private-rental homes. Increased competition in private-debt markets and the return of core capital will be key themes this year.
“While global risks persist, Ireland’s strong fiscal position, high employment and competitive tax regime provide a highly resilient backdrop for investors.”
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CBRE’s prediction that up to €4 billion could be invested in the Irish market in 2026 is informed, in large part, by its contention that vendors who deferred sales in the past two years now opt to sell in a more stable environment.
Residential
Pent-up activity in the residential sector is likely to lead the market with several large-scale private-rented sector (PRS) sale processes expected to commence in the coming weeks and months. CBRE expects the volume of PRS investment to more than double from €400 million in 2025, with this activity supported by VAT reductions and rent-regulation reforms.
Development Land
CBRE reports that apartment development viability is improving, though challenges persist around construction costs and forward-commitment structures.
Commenting on the market for development land, CBRE notes that a large-scale Dublin development site with planning permission for more than 300 private rental apartments for sale last year has been competitively bid for and is now sale agreed. The deal is being seen as an encouraging indicator for the market generally as all bidders, bar one, underwrote the transaction as a private rental development, as opposed to social housing.
This, CBRE says, signals a clear shift from sites for apartments being viable only for social and affordable housing in recent years.
Offices
Sentiment in the office market has changed materially, with a number of demand requirements in the market in the early-year period. There is a shrinking amount of available stock in the core Dublin 2 market, while just three speculative offices are currently under construction, all scheduled for completion in 2026.
CBRE expects Dublin office take‑up to exceed 200,000sq m (2,152,782sq ft) this year, supported by strong demand from technology, legal and public-sector occupiers.
Prime office rents are forecast to rise by at least 8 per cent to €753.50 per sq m (€70 per sq ft), the report finds, and may need to rise even further to €807.50 per sq m (€75 per sq ft), to make new construction viable.
Industrial & Logistics
Having closed out 2025 at more than 220,000sq m (2.37 million sq ft) (almost 50 per cent higher than 2024), take-up in the industrial and logistics sector is expected to stabilise in the 220,000 to 250,000sq m range.
Prime rents are forecast to reach €161.50 per sq m (€15 per sq ft), with small- and mid-sized multi-let industrial units outperforming at €215 per sq m (€20 per sq ft).
The development pipeline is concentrated in North Dublin, with 112,000sq m (1.2 million sq ft) scheduled for completion this year, 40 per cent of which is pre-committed.
Data centres
While grid constraints continue to challenge development and investment in Dublin, the Government’s new large energy user action plan (LEAP) and the Commission for Regulation of Utilities’ (CRU’s) updated connection policy aim to reopen access to the grid. This policy shift effectively ends the moratorium on data centre development in the Greater Dublin Area, and will, CBRE says, unlock opportunities for large-scale projects and restore Ireland’s position as a leading European data centre hub. Rapid AI adoption is expected to drive demand for large-scale data centre facilities.
Retail
Dublin’s prime high streets, specifically Grafton Street, now have a scarcity of suitable stock for occupiers seeking flagship stores, the report finds. While there are pockets of availability, the larger store formats sought after by modern retailers are largely occupied, and this presents a challenge for the market.
The vacancy rate on Grafton Street at the end of last year was just 3 per cent (on a per unit basis), and will likely remain stable through 2026, while Grafton Place at 60 Dawson Street is also set to reach full occupancy in the coming year.
Prime rents are trending stronger at €5,597 per sq m (€520 per sq ft) on Grafton Street, and €3,230 per sq m (€300 per sq ft) on Henry Street.
Hotels
Transaction volumes exceeded €1.75 billion in 2025, driven by landmark portfolio sales. Activity will remain healthy in 2026, albeit below last year’s record. Combined guide prices for hotels currently on the market exceed €500 million.
While 1,370 new hotel beds are scheduled for delivery this year, adding approximately 5 per cent to existing stock, and 1,800 hostel bedspaces are currently under construction, Dublin’s hotel capacity will, at 28,770 beds, remain significantly behind that of major European capitals, CBRE says. This gap is reflected both in Dublin’s strong occupancy level of just under 85 per cent and in its average daily rate (ADR) of €173.
