The Irish property market has raked in €1.5 billion in the second quarter of the year, according to figures released by Savills Ireland.
The positive three-month period brings investments so far this year to €2.7 billion, representing a 170 per cent increase on the same period in 2020.
Investment in the industrial sector was particularly high for the last quarter, with a total of €325 million worth of industrial assets being traded, representing 22 per cent of the market share, a considerable increase on the long-run average of 4 per cent.
Commenting on the figures, divisional director of investments at Savills, Brendan Delaney said the industrial sector had been "relatively resilient" during the pandemic, while the occupier market is "suffering from a dearth of modern stock and an exceptionally low vacancy rate", which currently stands at 1.3 per cent.
"This has provided support for steady rental growth in the sector and investor demand has caused net initial yields to tighten from 4.75 per cent to 4.25 per cent over the past 12 months," Mr Delaney said.
"This imbalance of supply and demand looks set to continue for the foreseeable future with seven of the 14 buildings under construction already committed," he added.
The Savills' figures also show 90 per cent of residential units are being forward purchased, leaving just 10 per cent of transactions to standing stock.
There was also €311 million invested in office assets during the quarter, despite the move towards remote working prompted by the pandemic.