In recent years, Ireland has emerged as one of Europe’s most dynamic property markets. Economic strength, population growth, international migration and a persistent supply shortage in the housing market are creating an attractive environment for investors. Modern, efficient housing options in urban locations are in particularly high demand – ranging from traditional rental flats to specialised schemes such as student accommodation.

Supply gap shapes the market

Despite geopolitical uncertainties, the Irish economy is proving to be very robust. This is also confirmed by S&P’s recent upgrade of the country’s long-term credit rating from ‘AA’ to ‘AA+’ – the agency’s second-highest rating. The broad economic base and the strong presence of global companies stabilise growth and cushion external shocks – an important factor in safeguarding property investments. 

Dublin is at the heart of these developments. As the European hub for multinational companies, the city attracts highly skilled professionals from all over the world. Companies such as Google and Meta have their European and EMEA headquarters here, respectively. At the same time, numerous financial, technology and pharmaceutical companies are represented locally.
This strong economic performance is also reflected in the labour market. According to the Central Statistics Office (CSO), a new record high of around 2.83 million people in employment was reached in the fourth quarter of 2025. At the same time, the population continues to grow. Ireland’s population is expected to rise by around 0.6 per cent annually until 2035. This is the highest projected growth rate in Europe. 

This momentum is driving sustained high demand for modern housing. However, even ambitious new-build programmes cannot meet this demand. The result is a structural supply shortfall, which is particularly evident in the rental segment of urban areas. This makes the Irish residential investment market particularly attractive to investors. Rising demand, combined with a stable rental market, promises attractive returns. In Dublin, for instance, prime yields of around 5.25 per cent are currently being achieved for student apartments. This makes the Irish capital the frontrunner among Western European cities. By way of comparison: in Berlin, the prime yield stands at 4.7 per cent, in Paris at 4.5 per cent and in Amsterdam at 3.9 per cent.

Market selection highlights quality

Selection in the property market reinforces this trend. Large companies prioritise energy-efficient, modern and future-proof spaces in order to achieve their own ESG targets and offer attractive working environments. Properties that do not meet these requirements are more susceptible to vacancy and are subject to greater fluctuations in income. Sustainability thus has a direct impact on usability, demand and income stability.

The focus is no longer on improving individual sustainability indicators, but on the impact on competitiveness and stable cash flows over the holding period. This shift is changing the value creation logic in the market, bringing the further development of existing stock increasingly into focus. The ZIA Spring Report 2026 underscores this structural development: Whilst completions in the office segment fell by 24 per cent to 1.95 million square metres in 2025, the volume of refurbishment projects is increasing noticeably. According to the ZIA, these account for around 25 per cent of the project pipeline in A-cities up to 2027. 

Growing student numbers as a further driver of demand

Furthermore, Ireland, and Dublin in particular, is increasingly establishing itself as an international centre of education. In the 2024/2025 academic year, the number of international students rose by around ten per cent to a record level of 44,500. Dublin is home to three of Ireland’s most significant higher education institutions: Trinity College Dublin, University College Dublin and Dublin City University.

This development has a direct impact on the housing market and demand. According to calculations by data provider Bonard, around 60 per cent of the demand for student accommodation could not be met in 2025. Occupancy rates in this housing segment are correspondingly high – around 98 per cent last year – as is rent growth, which stood at around five per cent nationwide compared with the previous year. Student apartments thus combine high rental security with further potential for rent increases.

Regulatory changes create investment incentives

In view of the persistent supply gap, the Irish government is increasingly relying on regulatory measures to mobilise institutional and private capital and promote housing construction. With the entry into force of the “Residential Tenancies (Miscellaneous Provisions) Act 2026” in March 2026, rent regulation was further developed in a differentiated manner: For existing tenancies, rent increases remain capped and are linked to the Consumer Price Index (CPI), with an upper limit of two per cent per year. This cap does not apply to new-build projects; here, rent adjustments are more closely aligned with inflation trends. For new lettings, an adjustment to market levels is also possible.

The aim of this differentiation is to create investment incentives, increase planning certainty and, at the same time, open up additional scope for rent adjustments. This is intended to increase the market’s attractiveness to investors and, in particular, to strengthen the new-build sector.

Real I.S.: Proximity to the market as a strategic advantage

Real I.S. has had a branch in Dublin since 2023. This local presence not only enables better access to transactions but, above all, a deeper understanding of market mechanisms, price levels and shifts in demand.

With the Real I.S. Ireland Residential Fund, this market strategy has been translated into a concrete investment product. The fund invests specifically in modern residential properties in urban locations, thereby positioning itself in a market environment characterised by sustained high demand and limited supply.