In its pre-Budget 2026 submission, Savills warns that persistently high transaction costs are dampening investment in the commercial property sector, while buyer supports that haven’t kept pace with inflation are making it harder for first-time buyers to access new homes – at a time when Ireland must remain competitive in a global market for capital, talent, and innovation.

Commercial Stamp Duty

“Reverting commercial stamp duty to 2%, as it was between 2011 and 2017, would send a strong signal that Ireland remains a competitive, investor-friendly location. At a time when international capital is more selective, cost matters – and so does confidence,” said Mark Reynolds, Managing Director of Savills Ireland.

Ireland currently has one of the highest commercial property transfer taxes in Europe, making it less attractive for investors compared to peer markets. For example, at a 7.5% rate, an investor acquiring a property yielding just 3.75%, effectively loses two full years of rental income to stamp duty.

“This is about restoring Ireland’s competitiveness for investment and ensuring we have the modern offices, retail, and logistics spaces needed to support economic growth and jobs.”

Help-to-Buy

Savills is also urging the Government to increase the Help-to-Buy (HTB) property value threshold from its current €500,000 cap to at least €621,000 – reflecting the level it would be today if it had kept pace with inflation since the scheme's introduction in 2017.

Consumer inflation has surged by 24.2% in that time, but the threshold has remained unchanged – eroding the scheme’s effectiveness.

According to the CSO, the average price for a new home in Dublin now stands at €562,000 across all buyer types, and €515,000 for first-time buyers specifically.

“This means more and more new homes are simply out of reach under the current HTB limit,” said Reynolds. “Updating the threshold to align with inflation will directly support buyers and help maintain a pipeline of viable new housing supply in urban areas where demand is highest.”

Beyond stamp duty and the Help-to-Buy scheme, Savills submission outlines additional priority measures to remove structural barriers to housing delivery, including:

• Expanding Uisce Éireann’s statutory remit to enable the proactive delivery of water and wastewater infrastructure that aligns with national and regional population and housing growth targets, rather than focusing solely on regulatory compliance. This should be supported by increased capital funding to ensure timely and coordinated infrastructure delivery essential to meeting Ireland’s housing needs.
• Updating Ireland’s construction labour modelling to reflect the reality of the stated 50,000-unit annual housing target, alongside investment in training and guarantees that apprenticeships are completed within four years.
• Investing in enhanced housing market data services, including funding for real-time data systems to support better decision-making by policymakers and industry.