Land Sales Double to €239m but Shrinking Deal Numbers Highlight Ongoing Housing Pipeline Challenge
Residential sites dominate Ireland’s development land market as developers continue to compete for strategic opportunities despite fewer transactions and higher financing costs.
1 August 2026 | editor@breakingground.news
Ireland’s development land market more than doubled in value during the second quarter of 2026, with transactions reaching €239.1 million despite the lowest quarterly deal count since early 2024, highlighting continued competition for strategic residential land as developers position themselves for future housing delivery.
According to Savills’ latest Ireland Development Land Market report, 13 development land transactions completed during the quarter, generating €239.1 million in sales. While this represented more than twice the value recorded in the same period last year, the volume of land traded fell sharply, with just 134.5 acres changing hands, a 62% decline compared with the first quarter of 2025.
For homebuilders, the figures suggest that while capital remains available for well-located development opportunities, competition is increasingly concentrated around a smaller number of strategic sites capable of supporting significant housing delivery.
Residential land continued to underpin the market, accounting for almost two-thirds of all transactions and generating €131.1 million in sales, a 51% increase on the same period in 2025. Although the number of residential land deals was 43% below the five-year average, sustained house price growth continued to support land values. National house prices increased by 6.2% year-on-year during the period, according to the report.
One of the quarter’s largest residential transactions was the reported €70 million acquisition of approximately 54 acres at Edmondstown, Dublin 16. The site, identified in the South Dublin County Development Plan, has the potential to accommodate between 1,000 and 1,200 homes despite not yet having planning permission.
The second-largest residential deal involved the Land Development Agency’s reported €20 million off-market purchase of a 9.6-acre regeneration site at Jamestown Industrial Estate in Dublin 11, which has the potential to deliver around 600 homes. Meanwhile, Lioncor acquired 6.6 acres at Fortfield Road in Dublin 6 for €15 million, with planning permission being sought for 284 homes.
The report also points to a continuing premium for development-ready land. Residential sites with planning permission achieved average values of €2.1 million per acre, compared with €1.4 million per acre for sites without permission, representing a 50% premium. For developers, the differential underlines the financial value of planning certainty at a time when delivery timelines remain under pressure.
Dublin remained the dominant market, accounting for 54% of all development land transactions, although this was below the five-year average of 58%. Outside the capital, Cork recorded €4.7 million in land sales, including the disposal of a fully serviced six-acre BASF site suitable for industrial development. Additional residential land activity was recorded across Wicklow, Louth and Kerry.
Transaction sizes also reflected a more selective market. Nearly half of all deals were valued between €1 million and €5 million, while 31% fell into the €10 million to €20 million range. Transactions exceeding €50 million represented 15% of activity, with a further 8% in the €20 million to €50 million category. Smaller sites continued to dominate, with 77% of transactions involving parcels of less than 10 acres.
Looking ahead, Savills cautions that geopolitical uncertainty and changing interest rate expectations could influence development viability over the coming months. While markets had expected a further reduction in European Central Bank rates earlier in the summer, expectations have moderated. With the ECB deposit rate remaining at 2.25%, financing costs continue to be a key consideration for developers assessing new land acquisitions and project viability.
For Ireland’s homebuilders, the second-quarter figures reinforce two competing trends. Capital continues to target strategic residential opportunities capable of delivering large-scale housing, yet the limited number of transactions and the premium attached to consented land highlight the ongoing constraints on bringing development-ready sites to market. At a time when national housing output remains a policy priority, improving the speed and certainty of planning and infrastructure delivery may prove as important as access to development finance in unlocking future housing supply.
