IRELAND Trends and Developments Contributed by: Diarmuid Mawe, Craig Kenny and Katelin Toomey, Maples Group
Industrial and logistics The industrial and logistics sector faced global economic uncertainty in 2024, resulting in annu - al take-up in Dublin falling by 50%. However, increased levels of nearshoring and Ireland’s strong economic performance are expected to drive improved activity in 2025. Notable invest - ments in 2024 included the sale and leaseback of Primeline Group’s warehousing units, which were acquired by Deka Immobilien. The demand for logistics space continues to be robust, espe - cially in prime developments such as Horizon Logistics Park. Office Liquidity in the office sector has seen an improvement, with take-up increasing by 66% during 2024. 2024’s most notable leasing trans - action took place at Two Wilton Park, where EY committed to a new long-term lease for Grade A+ space. Occupier demand remains largely concentrated on Grade A+ sustainable spaces within Dublin city centre, and the availability of such premium stock in prime locations is starting to decline. 60% of Dublin office take-up in 2024 comprised highly sustainable stock – ie, buildings with a BER of at least A3 and strong Leadership in Energy and Environmental Design (LEED) or Building Research Establishment Environmental Assessment Method (BREEAM) credentials. The demand for Grade A sustainable office space will continue to split the market, which should lead to an increase in the refurbishment and retrofit - ting of older assets. Residential The residential sector continues to face strong demand and rising house prices, with residen - tially zoned and serviced land remaining highly
sought after. The pricing of such land is expect - ed to remain competitive in 2025. The Irish political environment has a stable out - look, with the re-election of the largely centrist government in November 2024 for a further five-year period. There is a growing recogni - tion in government circles that measures need to be taken to attract institutional capital back into the residential sector to boost the current under-supply of housing. A potential review of the “Rent Pressure Zone” legislation, which is due to expire in December 2025, could reignite investment in the sector. Ensuring adequate and affordable housing is a key concern of the Irish government, which is being addressed through the “Housing for All” plan. To achieve its housing objectives for 2022– 2030, the government aims to deliver 312,750 homes, comprising 88,400 social, 53,800 afford - able or cost rental and over 170,000 private units, with a state investment of EUR40 billion. Liquidity in the residential market is expected to improve in 2025, with new capital expressing interest in residential investments in Ireland. Hotels Although there were some challenges to trading performance, the hotel sector remained active in terms of deals in 2024. Nevertheless, room rates will continue to face challenges due to a significant amount of new bed stock scheduled to open in Dublin in 2025. In 2024, the total transaction volumes in the Irish hotel market amounted to EUR890 million, with an additional EUR30 million from hotel develop - ment site sales and EUR60 million from hostel transactions. This marked the sector’s busiest year since 2006, and transactional activity is expected to be robust again in 2025.
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