- Increased international capital flows, supported by a continual improvement in funding conditions, will result in higher investment volumes trading across Europe in 2025.
- Ireland is set to benefit from this wider trend, underpinned by the ongoing performance of the economy and the strength of the labour market. Domestic and European funds are expected to be increasingly active in 2025, focusing on the Living Sectors, Logistics & Industrial and Offices sectors.
- Stronger office occupier activity, a much reduced development pipeline and upward pressure on prime rents will support larger office transactions in 2025.
- Logistics and industrial assets will remain sought after, with further yield tightening expected for prime assets that trade in 2025. Lack of stock remains the key risk for this sector.
- Expectations that the new government will address constraints to activity in the housing sector, by for example, adjusting the rental cap, will greatly increase investor activity in the living sectors market.
- Overall, while potential disruption from geo-politics remains a risk, other key market variables are positioned to deliver stronger investment volumes in 2025 and should there be some solid resolutions in the geo-political space, the multiplier effect would be significant.
Joan Henry, Chief Economist & Director of Research, Knight Frank Ireland
For a full copy of this report, please contact
Joan.Henry@ie.knightfrank.com
or Robert.OConnor@ie.knightfrank.com