Real Estate Market in Dublin: Key Trends of Q2 2025

In the second quarter of 2025, Dublin’s real estate market was shaped by limited supply and selective large transactions. According to the JLL report, tenant demand remained resilient, while investment activity was more restrained.

Industrial & Logistics Market: Steady Demand

In Q2 2025, Dublin’s industrial and logistics property market remained stable: total take-up reached 624,000 sq ft, up 3% from the previous quarter, JLL experts note. However, on a half-year basis, the market is still weaker than the 10-year averages: overall volume is 13.3% below the long-term mean, and the number of deals is down 30%. Compared to last year, however, the market has grown by 137%, far exceeding the initial forecasts for 2025.

The key limiting factor remains constrained supply: new projects are extremely scarce and are mostly either pre-let during construction or built-to-suit for specific occupiers. By the end of June, more than 640,000 sq ft had been pre-committed or were in the final stages of negotiation. If the current trend persists, JLL projects that total take-up will exceed 2 million sq ft by year-end.

Rental levels remain at record highs. Prime rents stand at €13 per sq ft per year, while secondary space reached €12.50. Rental growth has slowed as tenants increasingly consider affordability and look for additional incentives. Vacancy remains low at 3.5–4%. Shortage of space is boosting demand for secondary stock, where rents have also reached historic peaks.



The outlook for the coming months is described as cautious: activity is expected to remain below the peaks of the pandemic expansion period due to limited supply, yet improving tenant sentiment supports the market. Enquiries for large units (around 50,000 sq ft) confirm steady interest in Dublin logistics.

Offices: Rising Leasing Activity and Shortage of Prime Space

In Q2 2025, office leasing activity in Dublin increased by 49% compared to January–March. Over the first half of the year, take-up exceeded 1 million sq ft, which is 29% above the five-year average. Vacancy decreased to 15.5% (–0.4 pp for the quarter), while the combined stock of available and pre-committed space has remained stable for about 18 months at 7.7 million sq ft. A shortage in the prime segment is emerging on the medium-term horizon.

The landmark deal of the quarter was Workday’s 416,000 sq ft lease at College Square. This became the third largest deal in Dublin over the past 20 years, accounting for about 40% of half-year activity and reaffirming the city’s status as a leading tech hub. Other notable transactions include Stripe’s lease at One Wilton and a major international tech company at Four & Five Park Place. Over six months, the tech sector accounted for 60% of total take-up and 25% of deals, signaling sector stabilization.

Dublin’s total office stock is estimated at 50.3 million sq ft. By the end of June, 1.11 million sq ft was under offer – one of the highest levels since 2015. Some of these, including the Workday contract, had already been finalized by Q2. Currently, 1.6 million sq ft is under construction, with 76% already pre-let. Completions for H1 amounted to 484,000 sq ft.



Prime office rents remain at €60 per sq ft per year, with yields at around 5%. According to JLL, the limited delivery of new stock until 2027 will deepen the shortage of high-quality offices over the next 18–24 months, driving further rental growth in the best-in-class segment. The high level of pre-lets will sustain leasing activity and gradually reduce vacancy.

Real Estate Investment: Slower Activity and Cautious Outlook

Real estate investment in Dublin in Q2 2025 declined by 29% to €389 million. Deal count fell by 19% to 21. Half-year trends are similar: a 15% decrease compared to the same period in 2024 – from €1.1 billion to €936 million.



The office sector led the quarter, accounting for €187.7 million or 48.2% of total investment. Kennedy Wilson sold 20 Kildare Street to German fund Deka’s WestInvest InterSelect for €74 million. This marked the first of several large office transactions in Dublin, a market that had seen no comparable deals since 2022. Another highlight was the sale of Ten Hanover Quay, further confirming investor interest in central locations.

Retail retained second place: quarterly investment reached €158.8 million (40.8%). Over the first six months, retail investment grew by 55% versus 2024 and exceeded the 10-year average by 38%. Key assets include those connected with Trinity College and several large shopping centers.

Industrial property recorded just €22.7 million across three deals, 45% lower than in Q1 and 71% below the long-term Q2 average. However, on a half-year basis, the sector is up 4.7% compared to the same period in 2024.

The weakest segment remains residential rental. Quarterly investment totaled €6 million (1.5% of the market), and H1 volume amounted to only €13 million, below last year’s levels. JLL attributes this to political uncertainty and declining developer margins. In June, Irish authorities introduced a reform aimed at stimulating residential investment, expanding supply, and strengthening tenant protections. Analysts forecast that the impact of these measures may become visible in H2 2025.

Overall, Dublin’s real estate capital markets in Q2 appear subdued. Investors remain cautious amid global uncertainty and price sensitivity, though demand for high-quality office and retail assets persists.

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