Value of development land sales falls 65% during first half of year

From January to June there were only 34 development land sales, well below the 63 transactions in the same period in 2022

Transactions in the development land market saw a steep decline during the first six months of this year, with the total value hitting a low of €134m, a report by Sherry Fitzgerald shows.

According to the report, this total spend was 65% lower than in 2022. Over the past nine years, the average total spend during the first six months of the year was €309m.

The volume of transactions was “equally low”, with the report highlighting the impact of higher borrowing costs and the strength of construction-cost inflation over the period.

Between January and June, only 34 development land sales took place, well below the 63 transactions recorded for the same period in 2022 and considerably lower than the long-term average of 60.

Sherry Fitzgerald said there were no transactions during the six-month period that exceeded €15m in value.

Smaller sites

In addition, there was a greater proportion of smaller sites changing hands during the period, with 65% of sites traded being less than five acres in size.

The largest transactions recorded involved the sale of a residential site at Rockbrook in Sandyford Business District by Irish Residential Properties Reit, Ireland's largest private landlord, to Comer Group for €13m.

Residential land accounted for 58% of transactions, while the proportion comprising land for commercial or industrial use was 14%. Lands zoned for mixed-use represented a further 25%.

The greater Dublin area accounted for 71% of total land spend, with the cities of Cork and Galway representing 15% and 14% respectively.