Investment in Ireland’s living sector is expected to hit between €800m (£685m) and €1bn (£857m) this year as global investor activity strengthens, according to Knight Frank.
In its latest market sector report on the Irish living sector, Knight Frank revealed it accounted for 34% of real estate investment in H1, standing at €477.8m (£409m). It was the second-highest sector behind industrial, which accounted for 38% of investment.
So far, investment in the Irish real estate market totalled €1.45bn (£1.24bn) across H1.
The first half of 2026 was a stark contrast to H1 2025. In 2025, there were only 12 residential deals over €1m (£857m) and only seven transactions above €10m (£8.6m), the latter of which occurred in H2. In the first half of 2026, there were six residential investment deals over €10m (£8.6m) and total spend was only 18% below the full-year residential spend for 2025.
Knight Frank said investors had reacted positively to recent regulatory reforms and other measures around construction viability.
However, while the H1 residential investment spend was much higher year on year, sales volumes were still considerably below the 2018-22 average of €764m (£655m).
Multi-family was the dominant subsector in H1 2026, accounting for 65% of overall living spend. Social housing, which did not feature in the 2025 deals completed, accounted for 26% of spend, while student accommodation made up the remaining 9%.
Joan Henry, chief economist and director, research, at Knight Frank Ireland, said: “Geographically, investors are forecast to converge on markets where liquidity, transparency and repricing have aligned.
“This geographic focus reflects a broader shift in behaviour. Investors are no longer waiting for a uniform global recovery. Instead, they are prioritising markets where entry pricing is clearer and execution risk is lower.
“Capital is becoming more selective, concentrating in locations where confidence in values, liquidity and exit prospects is highest.”
Globally, the living sector is expected to be the second most sought-after asset class in 2026, with 65% of investors surveyed in Knight Frank’s Global Active Capital Survey planning on targeting this sector.
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