€1.8 billion was invested into Irish commercial property in the third quarter of this year, according to new figures published by commercial property firm, CBRE Ireland.

This brings the total spend in the Irish market so far this year to €4.9 billion, an increase of almost 40% on the same period last year.

CBRE said the total for the third quarter is "significantly" above the quarterly average in the Irish market, which is around €1.2 billion.

It said investment volumes this year have been driven by "exceptional" transactions such as the Hibernia REIT €1.1 billion portfolio trade in the second quarter.

The largest transaction in the third quarter was the sale of the Salesforce Office HQ and The Samael Hotel in Dublin 1, which traded as a portfolio, to the acquirer Blackstone.

The sale price of this transaction was more than €500 million. Other notable office deals in the third quarter include the sale of the Watermarque Building in Dublin 4 and the Eight Building in Dublin 8.

"While volumes in the Irish market have been robust in the year-to-date, exceptional one-off sales have driven spend materially higher than in 2021," said Colin Richardson, head of research at CBRE Ireland."

"The office and residential sectors continue to attract the bulk of investor interest.

"However, the dynamics of the Irish investment market continue to shift, in-line with global macroeconomic headwinds, which are negatively impacting sentiment," he added.

Mr Richardson said with interest rate increases and rising debut costs, they are beginning to see yields come under pressure.

"This is likely to be reflected in the final quarter of the year," he said.