Almost €800 million was invested in the Irish property market in the third quarter of 2021, bringing the total investment in real estate this year to €3.5 billion.
This represents the highest volumes for the period on record and double the volumes seen in the first three quarters of 2020, according to a report from property firm Savills Ireland.
The property market has rebounded strongly since Covid-19 restrictions were eased and Savills predict the total investment volume to reach between €4.75 billion and €5.25 billion by the end of the year.
Over half of the investment in the third quarter of 2021 (52 per cent) was in the multi-family sector, totalling €414 million.
There was an investment of €107 million in the retail sector this quarter and Savills expect that figure to grow.
The office sector saw a spend of less than €140 million, which is lower than usual, but this sector should expect a recovery according to Savills.
Brendan Delaney, divisional director of investment at Savills, said: “Conditions in the investment market seem to have returned to relative normalcy as restrictions have been reduced throughout the year. 2020 was defined by two lost quarters with travel restrictions hampering the ability of foreign investors to physically come to Ireland, while in-person viewings also faced serious disruption throughout the year.”
Mr Delaney added: “We are now seeing a resumption of the strong levels of activity present before the pandemic with several large deals that are close to signing set to drive a strong Q4. Based on our analysis we expect to see year-end totals of between €4.75bn and €5.25bn in 2021, the second strongest year this cycle.”