In Q1, €933.0 million worth of investment transactions took place, up 10.3% on Q1 last year and 19.4% ahead of the five-year average. The average deal size increased to €30.1 million, the largest Q1 on record, reflecting the appreciation in values over the last decade and the increased participation of capital partners seeking investments of scale.

John Ring, Director of Research at Savills Ireland, commented:

"The strong performance in Q1 2023 is a testament to the resilience and attractiveness of the Irish commercial real estate market. The trend towards larger deal sizes and the increasing participation of international investors demonstrate the continued confidence in our market."

Some of the most significant deals in the quarter include the acquisition of the Valley Healthcare platform by KKR through its subsidiary company John Laing for €300 million, the sale of Greenogue Logistics Park to Ingka Investments for €110 million, and the sale of Opus, a prime PRS scheme located in Dublin’s south docklands, to Pontegadea Investments for €101 million.

In terms of geographical spread, 57% of deals took place in Dublin, with the remaining 43% occurring nationwide.

Buyers from the United States represented the largest share of active market participants in Q1, with a 34% market share, followed by Europe (24%), Ireland (22%), and the UK (11%). 

Savills concluded that despite the strong performance in Q1 2023, investor sentiment remains cautious as the market continues to adjust to the higher interest rate environment. However, the Irish commercial real estate market has proven to be resilient, offering attractive investment opportunities and long-term growth potential.