Milestone purchases drive recovery in commercial property as quarterly investment tops €1bn

Last quarter saw the sale of One Molesworth Street in Dublin 2 for €110m drive investment in the recovering sector 

So far this year, investment in commercial property stands at €1.5bn, nearly 70% ahead of the same period in 2025. Photographer: Paulo Nunes dos Santos/Bloomberg

Investment in Irish commercial property reached just over €1bn in the last three months, marking the strongest second quarter in four years, new figures from real estate giant CBRE shows. 

Supported by healthy activity across all sectors, CBRE said the rise was driven by one large portfolio sale, with One Molesworth Street, Dublin 2 changing hands for €110m. 

Sold by Henderson Park to MEAG, the investment management arm of Munich Re, the single office transaction marked the largest in Dublin since the Salesforce Tower sale in 2022.

Spending over the last three months was also significantly higher than in the same period in 2025, which saw just over €380m in transactions. So far this year, investment in commercial property stands at €1.5bn, nearly 70% ahead of the same period in 2025, CBRE said.

One Molesworth Street in Dublin 2 which sold for €110m last quarter

Further office activity in the quarter included the sale of One Haddington Buildings, Dublin 4 for over €27m, which was acquired by Manova Partners on behalf of Mapfre, the Spanish insurance and financial services group, from Deutsche Bank. Total office investment in the second quarter exceeded €180m, representing approximately 18% of total spend in the three months.

Residential sector

The residential sector accounted for approximately 23% of investment in the quarter, with strong activity across several of sub-categories. Most notably, Project Lime, a large social housing portfolio, transacted at €84m with a domestic buyer. 

Student housing asset in Dublin 7, LIV Dublin, also transacted in the three month period, acquired by Greystar for €40m, continuing a broader trend of growing institutional investment in the Dublin student housing market. A stabilised off-market private rental sector asset and a further off-market social housing portfolio also closed in the quarter, bringing total residential investment to €233m.

CBRE said the recovery in residential investment was helped by "plentiful availability" of debt in the sector, combined with greater regulatory clarity which has helped bring institutional capital back. CBRE is also expecting several further assets to enter the market in the second half of 2026. 

The second quarter also saw a notable presence of European insurance and reinsurance capital across office and residential, with MEAG's acquisition reflecting a "structural shift" in how continental European insurers are allocating long-term capital.

Across industries, CBRE named industrial and logistic as the standout sector so far this year, accounting for approximately 36% of volumes in the first half, the majority of which reflects the Horizon transaction.

Residential – spanning social housing, private rental, and student living – was the second most active sector at approximately 31% off investment in the first half of 2026, which CBRE said reflected the "structural undersupply story" that continues to drive institutional interest. 

Office was the third largest sector at approximately 19% of volumes in the first half, with nearly €300m of transactions so far across prime and secondary assets, led by One Molesworth Street.

Retail also featured in the second quarter, with the sale of the ILAC Shopping Centre for €45m to Hammerson by Irish Life, one of the largest retail transactions in recent years. Retail accounted for approximately 6% of investment in the last three months, CBRE added.

"Q2 has been a strong quarter across the board," said Kyla Rothwell, head of capital markets at CBRE. "The sale of One Molesworth Street demonstrates appetite for prime office in Dublin at the right price, and the residential sector was very active. 

"What is particularly encouraging is the breadth of buyer profiles — European insurance capital, tier 1 institutional capital, REITs and domestic money all transacting in the same quarter. The market feels meaningfully more liquid than it has over the past couple of years, and the H2 pipeline reflects that confidence.”