Market Monitor Investment Spotlight Q1 2026

At Murphy Mulhall, we are pleased to present our latest independent assessment of the Investment Market, led by Robert Murphy and Brian Gaffney, highlighting transaction activity, sector performance and outlook for the year ahead.

Here’s a snapshot of what has been happening:

Investment Market Overview:

“The Irish investment market has started 2026 on a strong footing, with improved pricing clarity and an increase in transactional momentum. Demand remains strongest for income-producing assets, particularly within offices, PRS and industrial sectors, while international and domestic capital continues to target well-located assets with secure fundamentals.”

• Strong Quarterly Turnover: Total investment spend reached approximately €443 million across 23 transactions in Q1 2026
• Most Active Lot Size: €1-5 million bracket accounted for 46% of all transactions
• PRS Dominance: Approx. €245 million deployed into the PRS sector (55% of total spend)
• Office Sector Leads: Offices were the most active asset class with 10 transactions during the quarter

Sector Insights:

Office Market – Prime Offices Pulling Ahead
Demand remains concentrated on Best-in-Class offices in prime locations, with rental growth expected to continue and yields forecast to compress towards 4.5% by year-end. Value-add opportunities are emerging as older city-centre stock is repositioned amid tightening BIC supply.

Retail – H2 Hopes to Offer More Movement 
Retail parks and stronger suburban shopping centres continue to benefit from low vacancy and rental growth. While transactional volumes will remain limited, select opportunities are expected in the second half of the year.

PRS – Yield Compression to Continue
The PRS sector is expected to be the busiest segment throughout 2026, driven by legislative clarity, limited new supply and ongoing rental growth. Yields are anticipated to fall below 4.5% by year end.

Industrial & Logistics – Investor Demand Remains
Investor appetite remains strong, albeit with limited availability following a highly active 2025. Activity in 2026 is expected to focus on older stock, with renewed prime activity anticipated into 2027.

2026 Outlook:

• Continued focus on PRS, Office and Industrial assets
• Increased activity in value-add and re-positioning strategies
• Stable to improving yield outlook for prime assets
• Strong investor interest in income-secure opportunities across Dublin and key regional markets

Want more information? 

Download Market Monitor Investment Spotlight Q1 2026