IRELAND Trends and Developments Contributed by: Diarmuid Mawe, Craig Kenny and Katelin Toomey, Maples Group
Conclusion The Irish CRE market is poised for a dynamic year in 2025, with several emerging trends shap - ing the landscape. The easing of monetary con - ditions, a focus on ESG considerations and the introduction of the Planning and Development Act 2024 are key factors influencing the mar - ket. Investors, developers and occupiers must navigate these trends to capitalise on the oppor - tunities and address the challenges presented by the evolving market conditions. As Ireland continues to adapt to ambitious climate goals and regulatory changes, the CRE market will play a crucial role in driving sustainable growth and development. The underlying fundamentals of the Irish economy remain robust, presenting value-seeking investors with opportunities to acquire reliable income-producing real estate assets at attractive yields, particularly in sectors such as retail and logistics. As we look ahead, the market is well positioned to continue its upward trajectory, offering promising opportu - nities for investors and stakeholders alike.
Dublin hostels Dublin tourist hostels, a previously under-sup - plied segment of the city’s accommodation market, have experienced robust demand from both international backpackers and domes - tic budget travellers in recent years. However, the COVID-19 pandemic significantly impacted many hostel operations, leading to closures and conversions into emergency housing due to increased pressures on the Irish housing mar - ket. It is estimated that at least 1,300 hostel beds have been removed from the market over the past five years, and this has prompted renewed interest and investment in the sector over the last 18 months. The most notable transaction in 2024 was the sale of the Jacobs Inn Hostel for over EUR45 mil - lion, highlighting the increased value placed on these properties. The sale process for the Euro - pean portfolio of Generator Hostels, including its Dublin location, is also well underway, with the seller seeking approximately EUR800 million for the 14-hostel portfolio. Institutional investors are now recognising the potential of this sector.
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