A total of €1.5 billion was invested in property in Ireland between April and June, new figures from property advisor Savills shows.
Savills said that brought spend in the first half of the year to €2.7 billion, which it said was the second highest figure on record.
It noted that the industrial sector was the stand-out performer of the second quarter.
€325m worth of industrial assets traded gave the sector a 22% market share, well ahead of the long-run average of 4%.
Savills said with a tight vacancy rate of 1.3% and strong occupational demand, investors are seeking exposure to the sector which has proved resilient during the pandemic.
An additional €757m was invested in private rented sector (PRS) assets in the second quarter, which brought the total year-to-date PRS investment volumes to €1.5 billion - 25% higher than full-year investment into the sector in 2020.
Savills noted that the market share of PRS fell slightly from 58% in the first quarter to 51% in the second quarter but still accounted for four of the five largest deals of the quarter.
Meanwhile, a total of €311m was invested into office assets during the second quarter.
The major deals included Deka's €164m purchase of Block A, Riverside IV in Dublin 2 and Corum’s €60m purchase of One Navigation Square in Cork.
Block B in Liffey Valley also sold, trading for €18m and including life sciences tenants such as AstraZeneca and Abbot.
Savills said the life sciences sector is predicted to be one of the next big growth sectors of the global economy as we emerge from the pandemic, and the country's strong reputation in this area gives it a great base from which to develop as a cluster of global importance.
Brendan Delaney, Divisional Director of Investments at Savills, said that investment in the office sector has been hampered by Covid-related interruptions to the construction pipeline and occupational market.
He said that as the year progresses and offices reach completion lease-up we would expect to see a pick-up in investment volumes in the sector.
"Therefore, while the PRS share of the market at the moment is relatively high, this will balance out as the year progresses with significant office and retail assets set to transact in the second-half of the year," he added.
