€600 million was invested into Irish commercial property between July and September, new data shows.
The latest report from commercial property specialists CBRE Ireland shows that investment volumes so far this year have reached €1.3bn.
This is the highest level of quarterly spend in the Irish market since the first quarter of 2023.
The report states that the rebound in the level of spend is the result of several factors, including a narrowing of the bid-ask spread, ECB base interest rate cuts and an increase in receivership sales.
The largest transaction so far this year was the sale of the Square Shopping Centre in Tallaght, which sold for around €130m to Eagle Street.
Retail was the most invested sector in the Irish market, accounting for 34% of spend in the year to date.
The sector is expected to be the most invested sector annually for the first time since 2016.
Among other major deals in the quarter was the sale and leaseback of Primeline Group's warehousing units in Ashbourne, Co. Meath.
The warehousing units were acquired by Deka Immobilien for around €70m.
According to CBRE Ireland, investment into the residential sector remains constrained, with just €256m of capital deployed into the sector so far this year.
Between 2018 and 2022, an average of nearly €2bn was deployed into the sector annually.
"Investors continue to cite rent control as the primary factor stymieing investment," the report states.
"Despite the slowdown in direct investment in the residential sector, recent refinancing processes involving institutionally owned private rental apartment assets in Dublin have attracted a wide array of lenders and very competitive terms," it added.
Colin Richardson, head of research at CBRE Ireland said there are a number of large-scale transactions ongoing at the moment.
"Should they close in the next three months, this will push full-year investment volumes to above the level of 2023 spend," he said.
