Irish Residential Market Sees €644 Million Investment in Late 2025/Early 2026

Institutional investors injected €644 million into Ireland’s residential market, specifically multifamily homes/private rented sector (PRS), in the second half of 2025 and first quarter of 2026. This resurgence follows a period of subdued activity, indicating increased investor confidence, according to Hooke & MacDonald’s Residential Market Report 2026.

In 2025, the multifamily/PRS sector accounted for €400 million, or 16 percent, of the total €2.44 billion investment across all asset classes, a 74 percent increase year-on-year. Including student accommodation, investment reached €583 million. By 2026, multifamily/PRS represented 55 percent of all investment turnover in Ireland, making it the strongest performing sector. Key transactions included the €212 million sale of Newmarket Yards in Dublin 8 to GIC/Beo Ventures, Ardstone’s €177 million acquisition of Spencer Place in Dublin 1, and MEAG’s €75 million purchase of 18 Newmarket Square in Dublin 8.

The uptick is attributed to a realignment of pricing expectations between investors and vendors over the past 12 months, improving on previous years where rising interest rates and regulatory uncertainty hindered investment. Since 2016, institutional investors have funded over 22,000 rental properties in the Greater Dublin Area, housing approximately 55,000 people.

Despite this, new apartment delivery remains below the required level due to viability challenges, including regulatory costs like the concrete levy, carbon tax, increased Part V to 20 percent, and the water levy. The report calls for government adjustments such as a further reduction in VAT for apartments and increasing the Help to Buy Scheme threshold, noting the current €500,000 limit is outdated.