5th August (Issue 508)
Welcome to the Origin Capital Weekly Irish Property Review. This update is designed to provide you with a full recap of the latest property news from the media over the last seven days.
MIXED-USE
St. Stephen’s Green, Dublin 2 An Coimisiún Pleanála (ACP) has refused planning permission for the €100m redevelopment of St Stephen’s Green Shopping Centre. The refusal by ACP overturns a grant of permission made to DTDL Ltd issued by DCC in December 2023. The largest component of the new scheme was to be office use providing for approx. 375,000 sq. ft of offices and ancillary spaces and the applicants increased the level of Retail and Food & Beverage space after the Council expressed concerns. In its refusal, ACP concluded that the scheme “lacks a strong sense of original aesthetic and would not achieve a sufficiently high standard of placemaking, urban design and architecture at this key city centre location”. The Irish Independent, 30th July
Retail
Hammerson Results The property investment group, which part-owns the Dundrum, Ilac and Pavilion shopping centres, reported a 5% increase in gross rental income on the same quarter in 2024. Its total portfolio value rose 11% to £3bn, which the group said was its first portfolio gain since 2017, after a £26m portfolio revaluation gain in the first half of the year, with Ireland reporting a revaluation gain of £7m due to “improvements in income in the period”. The Irish portion of its portfolio also saw sustained growth in occupancy rates, with a 2.5% growth to 98%. During the period, it signed a 38,000 sq. ft store upsize with Zara in Dundrum, as well as signing a renewal with Hollister and started negotiations with Wagamama for a new food and beverage offering. “All these deals were concluded comfortably ahead of previous passing rent” the group said. The Business Post, 31st July
ILAC Centre Hammerson has agreed a deal with Normal, the popular Danish retailer, to set up shop in the Ilac Centre as its first Irish store. Controlled by billionaire Anders Holch Povlsen, the company has more than €1.6bn in annual sales, and has 682 outlets in nine European countries. The bargain stores sell shelf-stable foods and personal care products. The Business Post, 31st July
Industrial
Savills Quarterly Report The market continued to recover in Q2, as take-up reached 549,000 sq. ft across 14 deals. This was in-line with the 10-year average but almost four times higher than the same period last year. The recovery versus Q2 2024 was driven by an increase in both the number and size of deals, after respective growth of 75% and 272% compared with last year. Notably, 68% of sq. ft transacted was for units larger than 100,000 sq. ft. There was a decline in transactions of units sized between 5,000 and 10,000 sq. ft. As a result of the uptick in market activity, Savills has reviewed prime rents upwards by €0.50 psf to €13.50 psf. The vacancy rate declined to 2.1% in Q2 from 2.3% in the previous quarter. Notably, this included an 18% decline in the number of units vacant compared to Q1. Big-box units, larger than 50,000 sq. ft, accounted for 61% of vacant space but just 17% of vacant units. Savills Industrial & Logistics Report, 30th July
MIXED-USE
JLL Property Index Conducted since 1969, the JLL Index measures returns on direct property investment. The portfolio, valued at approx. €608m, consists of 51% Offices, 19% Retail, 16% Industrial, and 14% Residential. The latest Index reports a 7.6% increase in annual overall returns, with the quarterly returns up by 2.5%. This marks the fifth consecutive quarter of positive growth, continuing the positive trajectory established in 2024. Capital values grew for the third consecutive quarter and are now up 1.4% yoy. This represents a turnaround from the previous declining trend, which reached a low point of -16.1% in Q3 2023. Sector performance remains varied, with retail and industrial showing strong annual growth at 3.4% and 7.8% respectively, while office capital values recorded a slight decline of -0.9%, reflecting the nature of the index portfolio. Industrial capital values continue to demonstrate the strongest performance and stand 7.8% higher than a year ago, outperforming the other sectors. Rental values within the portfolio have shown notable growth in Q2 2025, increasing 3.3% yoy. This is particularly evident in the retail sector, where ERVs have increased by 8.8% annually. Furthermore, the portfolio’s income index continues its strong performance, rising 3.6% in the quarter and 5.3% yoy. JLL Press Release, 31st July
Residential/Development
House Sales Figures from residential valuation service Geowox revealed that a total of 11,734 homes were sold in Q2, 13.2% down compared to the same period in 2024. The slowdown in sales was driven by a drop off in the number of homes sold in the lower price brackets up to €375,000. In the second quarter of this year, 1,815 homes were sold for between €151,000 and €250,000 compared to 2,538 homes in the same period of 2024. Home sales in the €251,000 and €375,000 bracket declined by 20% (from 4,168 to 3,302). The number of homes sold for under €150,000 has also plummeted, down from 1,468 in the second quarter of 2024 to 965 in the same period this year. Home sales in all other categories rose marginally, but there was a sizeable 11% uptick in the number of homes valued at greater than €800,000 to 753 in the quarter. Geowox said median prices in Ireland had continued to “steadily rise” in 2025 with the median price for a home in Ireland up 9.5% to €370,000 in 12 months. The Business Post, 29th July
Zoning The Minister for Housing, Local Government and Heritage, James Browne, and the Minister of State with responsibility for Planning, John Cummins, issued Guidelines instructing local authorities to update housing targets in line with the revised National Planning Framework (NPF). The Ministerial Guidelines identify the national housing growth requirements for each local authority based on the Revised NPF, which are to plan for approximately 55,000 new homes pa on average between now and 2034. An additional headroom of 50% will be available to local authorities enabling them to zone for a total of up to 83,000 units pa. Each local authority is expected to reflect these new targets by updating their individual development plans. While they will be kept under review and updated again before 2030, the Guidelines set out the housing demand scenario to 2040 for each local authority, based on ESRI modelling of population growth and structural housing demand and assumptions relating to unmet demand. Government Press Release, 29th July
Grand Canal, Dublin 2 Irish property owned by Amancio Ortega, the billionaire fashion mogul, booked a €8m impairment last year, new financial filings reveal. The owner of Inditex, the clothing firm behind Zara, Bershka and Pull & Bear, has built up a large portfolio of property worldwide that has been valued at more than €20bn. Firms in Ireland owned by Ortega have spent hundreds of millions of euro in recent years building a portfolio of Irish properties. Pontegadea Ireland Limited was a vehicle used by Ortega to acquire the Opus 6 apartment block on Hanover Quay for €104m in 2023 from Angelo Gordon, a New York-based investment manager, and Carysfort Capital. New accounts filed for the company that controls the 120-unit block near Grand Canal Dock showed the company booked an €8 million impairment on the property. Following the impairment, the value of investment property controlled by the firm fell to €92.3m. The Business Post, 31st July
Sherry Fitzgerald Report Transaction activity in the Irish investment market was more subdued in Q2 with turnover totalling €388m. This comprised 20 transactions, considerably lower than the 34 deals recorded for the same period in 2024. In the year to date, capital spend totalled €936m, 36% ahead of the corresponding period in 2024. That said, it remains well below the long-term average. The office sector witnessed a resurgence in activity accounting for half of total turnover during Q2. Retail was the second strongest performing sector absorbing a further 41% of investor spend. No residential assets traded during the period, highlighting the difficulties being faced by the sector. Overseas investors were responsible for 87% of total investment during the three-month period, accounting for the top four transactions. Sherry Fitzgerald Report, 31st July
Approved Housing Bodies The Department of Housing is clamping down on what AHB’s can pay developers for apartments. In a circular in June, the department warned AHBs that they should not pay developers substantially more than what local authorities pay in land costs for Part V housing units. Under Part V, developers must allocate up to 20% of a scheme to the local authority for social and affordable housing. Before they can start a development, they must agree the land cost element for each Part V home with the council. The developer is free to sell the rest of the units at any price. However, with more AHBs buying apartment blocks from developers, a situation has arisen where, in some cases, councils and AHBs are paying different land costs. The Department allocates funding for AHBs to buy the schemes through its capital advance leasing facility. AHBs are concerned that the circular could delay deals in the pipeline. Developers fear they could be out of pocket by up to €25,000 per home. One source said land values could differ because developers will quickly agree the land value with councils without much negotiation, to get on site quickly, or because developers invest thousands of euros in infrastructure after the land value is set with councils. He said talks with local authorities would now take longer to complete. The Department said engagement between AHBs, the Department and the Housing Agency was continuing. The Sunday Times, 3rd August
OTHER
Dublin Airport In plans lodged with Fingal County Council, DA Terminal 3 Ltd is seeking planning permission for four aviation-related cargo handling units to operate on a 24 hour, seven days a week basis and ancillary office space on a 30-acre site. In a cover letter lodged with the plans, CWPA Planning and Architecture state that the proposed development was a first but independent phase, within an overall longer term development proposal for DA Terminal 3 Ltd’s landholding. These “include the development of Terminal 3 and the overall development of the western campus”. They state that the overall landholding extends to 263 acres and that DA Terminal 3 is also working with key stakeholders and landowners to advance the western access road, the delivery of which is a significant objective of the Dublin Airport Local Area Plan. CWPA’s report confirms that DA Terminal 3 has engaged with Fingal on its strategic vision for the lands. The Irish Times, 29th July
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