Value of land development transactions more than double to €239.1m 

Land for residential use accounted for almost two-thirds of all transactions, report shows

'Ireland's long-term housing requirements and population growth mean the fundamentals supporting demand for development land remain firmly in place.'

The value of land transactions for development more than doubled during the period April to June, compared to the same period last year, as land for residential use accounted for almost two-thirds of all transactions, a report by Savills Ireland shows.

Overall, 13 transactions were completed during the quarter, worth a combined €239.1m. However, this is the lowest number of deals in a quarter since the start of 2024, and in terms of land volume, it is a decline of 62% to 134.5 acres compared to the same period last year.

The average site size during the quarter was 10.3 acres, with the largest site being 54 acres and the smallest just 0.1 acre.

The value increase was largely attributed to two significant transactions which accounted for the majority of market activity. One of them was the acquisition of Merchants Yard in Dublin for a reported €90m by Live Nation, and the €70m sale of lands at Edmondstown, Dublin to homebuilder D/Res.

The Edmonstown site has the capacity to deliver between 1,000 and 1,200 homes and has been singled out by South Dublin County Council in its development plan but does not have planning permission in place.

According to Savills, residential land remained the dominant sector, accounting for almost two-thirds of all transactions.

Residential land sales reached €131.1m, up 51% year-on-year, reflecting continued confidence in the long-term fundamentals of Ireland's housing market. Residential sites with planning permission continued to command a significant premium, averaging €2.1m per acre, compared with €1.4m per acre for unzoned or unapproved sites.

Director at Savills Ireland’s Development Land Agency John Swarbrigg said the second quarter of this year was “characterised by a small number of significant strategic acquisitions which demonstrate that well-located, high-quality development opportunities continue to attract substantial capital”.

Residential land remains the backbone of the market, underpinned by strong housing demand and ongoing supply constraints. Developers and investors remain selective, but there is a clear appetite for sites that can deliver homes at scale, particularly where planning risk is reduced.

Commercial transactions accounted for 23% of deals, while industrial represented the remaining 14%.

Dublin continued to dominate activity, accounting for 54% of all transactions, and €211.4m in value terms. Cork recorded land sales of €4.7m, including the sale of a six acre site on the western side of Little Island.

Looking ahead, Mr Swarbrigg said financing costs and geopolitical uncertainty may continue to “influence the pace of activity”.

“However, Ireland's long-term housing requirements and population growth mean the fundamentals supporting demand for development land remain firmly in place."

The company also noted while interest rate expectations have become more cautious in recent weeks, structural demand for residential development land continues to support market activity, particularly for well-located sites capable of delivering housing in key urban centres.