Up to €693.6m worth of investment properties changed hands across all sectors in the third quarter, which brings the value of deals over the first nine months of the year in the overall investment market to €1.6bn.
Estate agents Savills Ireland said the €693.6m figure represents a 16pc increase compared to the same period last year.
However, deal volumes remain 21pc below the five-year Q3 average, and have yet to recover to the highs of 2021 and 2022.
Nevertheless, Kevin McMahon, director of investments at Savills Ireland, said that with a “healthy pipeline of transactions for the remainder of the year, 2025 is well poised to surpass the €2.5bn transacted in 2024”.
After a period when investors shied away from buying apartment complexes, they tended to return to the market this year and three deals helped the sector claim a 37pc market share.
Those deals included Irish investor and developer Ardstone’s acquisition of the 360-apartment Spencer Place complex sold by Johnny Ronan and Fortress Capital for €177m.
Ardstone also bought Birchwood Court, a new 180-unit apartment complex in Santry in North Dublin for €79m.
French investors also remain active but mainly in the retail and office market. Corum Asset Management paid about €47.2m for the Infinity Building, a high-profile six-storey office block in Smithfield, Dublin 7. Fully occupied it generates €3.895m in annual rent.
Another French investor, Iroko Zen, paid €24.5m for Bright Motor Campus’s showroom in Swords, Co Dublin, in a sale and leaseback deal.
The office investment sector, which had suffered from the increase trend towards working from home and the uncertainty caused by US tariffs, has also turned in a heathy performance, accounting for 35pc of deal volume, across 12 deals.
As well as Infinity, another notable office deal was Kennedy Wilson’s sale of its 20 Kildare St development.
Industrial was the third-largest sector, capturing 13pc of market share. Retail as a sector fell from significant proportions of deal flow in earlier quarters to 10pc in Q3.
Mr McMahon said that “with three sizable logistics portfolios currently on the market, the sector could end up with a more meaningful share of activity by year-end.”
Institutional/REIT was the leading buyer type, accounting for 67pc of acquisitions. Irish and European buyers were active, accounting for 47pc and 35pc of transaction volumes, respectively.
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