Irish Development Land Market Records Strongest First Quarter Since 2019 with €198 Million in Deals
The Irish development land market has recorded its strongest first quarter since 2019, with €197.7 million transacted across 22 deals in the opening three months of 2026 — a performance that signals significant momentum in the commercial property and construction sectors and reflects growing confidence among developers and investors in the Irish market.
Background
The development land market is a leading indicator of future construction activity, as land purchases typically precede planning applications and construction starts by one to three years. A strong development land market in early 2026 therefore suggests that the pipeline of new residential and commercial development in Ireland is likely to grow in the 2027-2028 period, providing some grounds for cautious optimism about the country's ability to address its chronic housing shortage.
The market had been subdued in 2023 and 2024, as rising interest rates, construction cost inflation, and planning uncertainty combined to dampen developer appetite for new land acquisitions. The improvement in Q1 2026 reflects a combination of factors: the stabilisation of interest rates following the European Central Bank's rate-cutting cycle, a modest reduction in construction cost inflation, and growing confidence that the planning system — following the introduction of the Planning and Development Act 2024 — is becoming more predictable and efficient.
The 2019 comparison is significant. That year represented the peak of the pre-pandemic development land market, when confidence in the Irish economy was high and the pipeline of new development was growing strongly. The return to 2019 levels of activity in Q1 2026 suggests that the market has recovered from the disruptions of the pandemic and the subsequent period of economic uncertainty, though it remains well below the levels seen at the height of the Celtic Tiger era.
Key Developments
The €197.7 million transacted in Q1 2026 was spread across 22 deals, with an average transaction value of approximately €9 million. Dublin dominated activity, accounting for 55% of total value — approximately €109 million — across a mix of residential, mixed-use, and commercial development sites. The most significant single transaction of the quarter was Dublin City Council's €90 million acquisition of the Camden Yard site in the south inner city, which will be developed as the council's new headquarters before the Wood Quay site is released for residential development.
Outside Dublin, activity was concentrated in the commuter belt counties of Kildare, Meath, and Wicklow, where demand for residential development land remains strong driven by population growth and the expansion of the Dublin metropolitan area. Cork city and county also recorded a number of significant transactions, reflecting the continued strength of the commercial and residential property markets in Ireland's second city.
The supply of zoned and serviced development land — land that has planning permission and access to water, sewerage, and road infrastructure — remains a significant constraint on the market. Many of the most attractive development sites in Dublin and other major urban centres have already been acquired, and the pipeline of new zoned land coming to market is insufficient to meet the demand from developers and investors. This supply constraint is one of the factors driving up land prices and, ultimately, the cost of new homes.
Why It Matters
The strength of the development land market in Q1 2026 is a positive signal for Ireland's housing supply outlook, but it needs to be interpreted carefully. Land transactions are a necessary but not sufficient condition for new home construction — a site that is purchased in Q1 2026 may not see a planning application for 12-18 months and may not see construction start for two to three years. The pipeline of new homes that will actually be delivered in 2027 and 2028 depends on a complex chain of decisions and processes that extend well beyond the land market.
The concentration of activity in Dublin — at 55% of total value — also raises questions about the geographic balance of development. While Dublin is where housing demand is most acute, the government's regional development strategy aims to distribute growth more evenly across the country. The relatively modest activity in regional cities like Galway, Limerick, and Waterford suggests that the development pipeline in these areas is not yet keeping pace with the ambitions of the National Planning Framework.
The Camden Yard transaction — at €90 million, the largest single deal of the quarter — is a reminder that public sector bodies are significant participants in the development land market. Dublin City Council's acquisition of the site for its new headquarters is a legitimate use of public funds, but it also illustrates the competition for prime development land between public and private sector buyers, and the impact that large public sector transactions can have on market prices.
Local Impact
In the commuter belt counties of Kildare, Meath, and Wicklow, the strength of the development land market is translating into a growing pipeline of new residential schemes. Towns including Naas, Navan, and Bray are seeing significant development activity, driven by demand from buyers who have been priced out of Dublin. Irish Rail's commuter services from these towns to Dublin city centre — the Kildare line, the Navan rail project, and the DART — are central to the viability of residential development in these locations.
In Cork, the development land market is being driven by a combination of residential demand and commercial development, including the expansion of the city's technology and pharmaceutical sectors. Cork City Council's Local Area Plans for the Docklands and the North Quays are expected to unlock significant development potential in the coming years, and several major sites in these areas have been the subject of recent transactions. Bus Éireann's Cork city services and the planned Cork commuter rail network will be critical infrastructure for the residential developments that follow.
What's Next
The Q2 2026 development land market figures are expected to be published by the main commercial property agents in July, providing an updated picture of market activity in the second quarter. The Land Development Agency is expected to announce the acquisition of several new sites for affordable housing development before the end of the year, which will add to the public sector's presence in the development land market. An Bord Pleanála's processing times for strategic housing development applications — a key determinant of the speed at which land transactions translate into planning permissions — are expected to be reviewed by the Department of Housing in August.
