The SCSI has released its Commercial Property Market Monitor Mid-Year Review and Outlook, providing a detailed snapshot of occupier and investor sentiment across Ireland’s office, industrial, and retail sectors. The findings point to a market in early recovery, with industrial assets continuing to lead, prime offices showing steady improvement, and retail stabilising in prime locations despite ongoing challenges in secondary assets.
Key Findings
- Occupier demand:
- Overall occupier demand index: +13% net balance (down slightly from +17% in Q4 2024 but well above 2023 levels)
- Industrial: sustained growth at +15%
- Offices: steady recovery at +15%
- Retail: softened to +10% but remains in growth phase
- Investor sentiment:
- Flat at 0% net balance in Q2 2025 (down from +5% in Q4 2024), highlighting ongoing caution
- Industrial remains the strongest performer; office and retail investment subdued
- Capital & rental values (12-month outlook):
- Prime Industrial: +2.5% capital, +2.5% rental
- Prime Office: +2.1% capital, +2.6% rental
- Prime Retail: +1.0% capital, +1.8% rental
- Valuations & credit conditions:
- 57% of surveyors now view the market as “fair value” (up from just 11% in 2023)
- Credit conditions have eased since 2023, supporting cautious recovery
- Occupier trends:
- 86% of surveyors say tenants increasingly demand health, well-being and sustainability features
- 68% believe occupiers are willing to pay a premium for such facilities
- Many businesses are expected to reduce office footprints but consolidate into prime, well-located offices
The SCSI Monitor is based on responses from Chartered Surveyors nationwide and provides an independent barometer of market sentiment. It highlights a commercial property sector at a turning point, with selective growth, ongoing polarisation between prime and secondary assets, and sustainability priorities driving future demand.