- Although €386 million worth of development land traded in H2 2023, a more than threefold increase in comparison to H1 2023, the sale of the Former Jurys Hotel in Ballsbridge for €152 million accounted for the majority of this and masked the subdued nature of activity during this period.
- In total, €503 million worth of development land traded in 2023, a fall of almost one-third compared to the €731 million that transacted in 2022.
- Activity is anticipated to recover in 2024 as expectations of a more favourable interest rate environment gain momentum and construction cost inflation continues to recede. However, the Residential Zoned Land Tax and the Land Value Sharing Scheme will continue to weigh on sentiment.
- A number of government initiatives aimed at improving viability should also support activity in 2024. Moreover, additional staffing resources at An Bord Pleanála and the anticipated enactment of the Planning & Development Bill 2023, which contains a number of measures to reform the judicial review process, should begin to reduce wait times, further stimulating activity.
- Demand will remain strong for residentially zoned land with planning as well as commercial sites that can support industrial and hotel development in 2024. Opportunities to repurpose older office stock will also be popular.
Robert O’Connor, Associate Director, Research,
Knight Frank Ireland
