Irish Property Market Gains Momentum in Q1 2026

6 May

The latest JLL Irish Property Index points to a market that has moved decisively into a new phase of recovery and growth. With the strongest annual performance recorded since 2016, the results underline renewed confidence across the Irish investment landscape and highlight the resilience of well-positioned assets.

The Index, which has tracked direct property investment returns since 1969, reported overall returns of 11.4% year-on-year in Q1 2026, with quarterly returns rising by 3.6%. This marks the eighth consecutive quarter of positive growth, a clear signal that momentum is now firmly established across the sector.

Capital Growth Across All Sectors

One of the strongest indicators in the report is the broad-based improvement in capital values. Overall capital values increased by 4.9% over the past year, demonstrating that recovery is no longer isolated to select assets or locations, but is being felt across the market.

For investors and owners, this reflects a healthier pricing environment and improving sentiment after a more challenging period shaped by inflation, higher interest rates, and changing occupier demand.

Retail Leads the Market

Retail was the standout performer in Q1. Capital values rose by 11.3%, while estimated rental values increased by an impressive 15.7%. Demand has been particularly strong in retail parks, where accessibility, convenience, and strong consumer footfall continue to attract occupiers.

This performance reinforces the continued importance of well-located retail destinations that offer a strong mix of convenience, experience, and everyday relevance.

Office Market Defined by Quality

The office sector also returned positive results, with capital values up 3.4% annually. However, the report makes clear that not all office space is performing equally. Asset quality is now a key differentiator.

Demand remains focused on best-in-class buildings that can meet modern expectations around sustainability, workplace experience, and operational efficiency. At the same time, constrained Grade A+ supply is improving the case for refurbishment-led strategies, particularly for well-located older buildings with strong fundamentals.

This shift reflects a wider trend across major cities, where occupiers are prioritising quality over quantity and choosing space that supports talent retention, brand image, and long-term flexibility.

What It Means for the Market Ahead

The latest Index suggests that Irish real estate is entering a more confident and constructive phase. Positive returns, rental growth, and rising capital values all point to improving conditions, while sector performance highlights where demand is strongest.

For us, as developers, the message is clear:

Prime, high-quality assets remain in demand.
Refurbishment and repositioning opportunities are growing.
Strong retail locations continue to perform.
Sustainability and building quality are central to future value creation.

Looking Forward

As the market continues to evolve through 2026, we believe the strongest performance will come from assets that are adaptable, efficient, and aligned with the changing needs of today’s occupiers. The Q1 results are an encouraging signal, not only of market recovery but of a sector increasingly defined by quality, sustainability, and long-term value creation, values that are at the core of our business.