Irish Commercial property market shows strengthening recovery

Monthly Monitor | March 2026

Irish Commercial property market shows strengthening recovery

Economic environment
Irish commercial property continues to show clear signs of recovery as we move through early 2026, supported by a resilient economic backdrop. GDP growth is expected at 3 to 3.5%, with inflation stable at around 2%. Employment remains strong, supporting consumer spending, while public finances and household balance sheets remain healthy.

Investment market
Investment activity has strengthened, with 2025 volumes reaching approximately €2.2 to €2.5 billion. This momentum has carried into 2026, with growing transaction pipelines and renewed international interest. Prime yields have stabilised, particularly in Dublin offices, reflecting improved confidence and more supportive financing conditions.

Office sector
The office market recovery continues, with steady occupier demand focused on high-quality, ESG-compliant space. Vacancy rates are beginning to decline, while prime rents remain firm. Limited development and high levels of pre-letting point to a tightening supply outlook from mid-2026, supporting future rental growth.

Retail sector
Retail has remained resilient, supported by strong employment and improving consumer sentiment. Vacancy rates have declined in prime locations, with investor demand focused on grocery-led assets, retail parks, and prime high street units. Rental growth is expected to remain modest but stable.

Industrial sector
The industrial and logistics sector continues to outperform, driven by strong occupier demand and constrained supply. Limited development, due to cost pressures and planning constraints, is supporting ongoing rental growth, particularly in core Dublin locations.

Market outlook
The outlook for 2026 remains positive. Stable interest rates, improving investor confidence, and constrained supply across key sectors are expected to support further rental growth and increased transaction volumes. The market is entering a more balanced phase, with opportunities emerging across sectors.

Steven Fagan
Managing Director, Real Estate, Gresham House Ireland

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