Ireland’s Development Land Sales Hit €411m in 2024

According to Sherry FitzGerald, Ireland's development land sales soared to €411m in H1 2024, more than doubling the figures from the previous year.

The landscape of development land transactions in Ireland has witnessed a remarkable resurgence in the first half of 2024, as highlighted by the latest report from Sherry FitzGerald, a prominent estate agency. The total value of transactions in the Greater Dublin Area, which encompasses Dublin, Kildare, Meath, and Wicklow, alongside the regional hubs of Cork, Galway, and Limerick, reached an impressive €411 million. This figure represents a significant increase, more than doubling the €146 million recorded during the same period in 2023. Furthermore, it surpasses the long-term average for the first half of the year, which stands at €318 million.

Key Drivers Behind the Surge

The report indicates that the substantial figures for the first six months of 2024 were largely influenced by two major transactions. The most notable of these was the acquisition of the former Jury’s Hotel site in Ballsbridge by the US Embassy, which alone accounted for a staggering €152 million of the total expenditure. This transaction underscores the growing interest from international entities in the Ireland real estate market, particularly in prime locations within Dublin.

In addition to the Embassy's acquisition, another significant deal involved Cairn Homes, which purchased a 70-acre residential site in Donabate for over €50 million from developer Cannon Kirk. This site has the potential to accommodate 1,020 new homes, reflecting the ongoing demand for residential development in the region.

Stability in Transaction Volume

Despite the fluctuations in monetary value, the overall volume of development land transactions has remained relatively stable. A total of 43 sales were finalized in the first half of 2024, compared to 40 deals during the same timeframe in 2023. This stability suggests a consistent level of interest and activity in the market, even as the value of individual transactions has seen significant growth.

Interestingly, the turnover for the second quarter of 2024 was recorded at €194 million, which, while falling short of the long-term quarterly average, still represents more than double the amount recorded in the same period of the previous year. This trend indicates a robust recovery in the market, driven by both domestic and international investors.

Geographic Distribution of Transactions

A closer examination of the geographic distribution of these transactions reveals that 59% of the sites sold in the first half of 2024 were located in Dublin. This dominance is indicative of the capital's status as a prime location for development, attracting a wide range of buyers. Meanwhile, 12% of the transactions occurred in Cork and Galway, with these regions experiencing heightened activity levels, particularly in the first quarter of the year.

In addition, 10% of the sites sold were situated in Meath, while Kildare and Wicklow accounted for 5% and 2% of sales, respectively. This distribution highlights the growing interest in suburban and regional areas, as developers seek opportunities beyond the confines of the capital.

Market Outlook

Looking ahead, the outlook for development land transactions in Ireland appears promising. The significant increase in transaction values, coupled with stable volumes, suggests a healthy market poised for further growth. The ongoing demand for residential real estate, particularly in urban centers and their surrounding areas, is likely to continue driving investment in the sector.

Moreover, the interest from international buyers, as evidenced by the US Embassy's acquisition, may signal a broader trend of foreign investment in Ireland real estate. This influx of capital could further stimulate the market, leading to increased competition and potentially higher prices for development land.

The first half of 2024 has marked a pivotal moment for development land transactions in Ireland, with a notable rebound in both value and stability. The impressive figures reported by Sherry FitzGerald reflect a dynamic market that is adapting to the evolving needs of developers and investors. As the demand for residential real estate continues to rise, particularly in the Greater Dublin Area and key regional centers, the landscape of Irish real estate is set for an exciting future. Stakeholders will be keenly watching how these trends unfold in the coming months, as the market navigates the challenges and opportunities that lie ahead.