Capital flows into Irish property market totalled €32.38 billion in 2025, according to a report by Sherry FitzGerald, Ireland’s largest estate agent. This was a marked increase of 13 per cent from the €28.71 billion recorded in 2024. Capital flows into property refer to the financial investment in commercial and residential property markets, both of which saw an increase in capital spending.Residential assets remained the principal driver of activity, accounting for 83 per cent of total capital flows (€26.96 billion). The largest share of this activity was accounted for by household purchasers, at 81 per cent, while spending by non-households rose by 14 per cent to €5.18 billion. The report also recorded a 20 per cent increase in new home completions, helping to drive a 16 per cent increase in new home transactions.Capital flows into commercial property, development land and agricultural were 21 per cent higher in 2025 at €5.42 billion. This was largely due to a successful year for the hotel market, Sherry FitzGerald said, with €1.77 billion in sales in that sector offsetting declines in both direct commercial investment and development land turnover which came in at €1.81 billion and €692 million respectively. However, in its report, Sherry FitzGerald qualified its figures with an acknowledgment that many off-market transactions take place in the development market, the values of which are not disclosed. Jean Behan, senior economist and head of research at Sherry FitzGerald, said: “The Irish property market delivered another robust performance in 2025 with capital flows rising by 13 per cent for the second consecutive year.“This reflects improved sentiment across both the residential and commercial markets during the year, supported by the resilience of the domestic economy and a favourable interest rate environment,” he added.Dublin remained the dominant market in terms of capital deployed during the year (€14.79 billion), with Cork ranking second (€2.8 billion) and Kildare in third (€1.56 billion). Almost all counties recorded annual growth in capital flows in 2025, with the exception of Offaly, which recorded an 11 per cent reduction. Louth saw the strongest annual growth, partially due to MSD’s acquisition of the Wuxi plant in Dundalk alongside a sharp rise in residential activity. The Greater Dublin area saw some growth in capital flows, rising by 4 per cent to €19 billion, albeit much weaker than the rest of the State, which saw a 28 per cent increase in capital spending to €13.38 billion.Looking to the year ahead, the report said improved confidence across the key market sectors and renewed interest from international investors would help support strong transaction activity. The report also noted that continuing geopolitical tensions and increased energy prices have created ambiguity regarding the costs associated borrowing and construction. However, continued focus by the Government on increasing housing supply and strengthening the economy should help support activity across all property markets, it said.“Although the external environment has become more uncertain in 2026, the market is entering this period from a position of relative strength, supported by economic resilience, strong employment levels and increased investor interest,” Behan said.