Improvement in Land Sales in 2024; Framework in Place to Support Development in 2025

CBRE Ireland today confirmed that just over €900m of land sales transacted in 2024; this follows a strong Q4 where over €415m of transactions were recorded. The annual total of over €900m is nearly three times the total spend recorded in 2023 but still marginally below the 10-year annual average. For context, the opening quarter of the year saw just under €50m worth of land sales in Ireland, as the impact of higher interest rates, rising build costs and uncertainty in valuations came through in the Q1 market performance. The top five land sales of 2024 accounted for 50% of the total spend in the year.

– In 2024, nearly 60% of all capital deployed was for land with residential development potential and developers remain focused on the residential sector, as opposed to the commercial sector, entering 2025. The sale of the former Jury’s Inn site to the US Embassy and the sale of 103 acres of residential zoned land with planning permission for 1,020 units in Donabate, Co. Dublin to Cairn Homes were two of the largest transactions of the year.

– Other notable residential land sales that closed in 2024 included the sale of 18.5 acres of residentially zoned land at Kenure in Rush Co. Dublin to Ballymore, and the sale of two lots at Brennanstown, Dublin 18 totaling 29.4 acres with planning permission for up to 370 homes to Dún Laoghaire-Rathdown County Council.

– Ongoing conversations with developers indicate that there is a strong level of demand for sites, particularly for those with residential planning permission in place. However, there is a clear lack of zoned and serviced land coming to market for sale in Ireland, particular in the Eastern and Midlands Region.

– The success of the Large-Scale Residential Development (LRD) planning application process has given developers further confidence in the ability to obtain planning permission for sites with no planning, specifically for those sites with development capabilities of over 100 residential units or 200 PBSA units. This is demonstrated in the increase of large residential development sites that were purchased without planning in place, specifically for those that can accommodate a large quantum of housing.

– While developers focus is primarily on land with residential development potential, there are some large commercial sites coming to the market in 2025, including, potentially, a large-scale mixed-use city centre development.  

– The Planning and Development Act 2024 was signed into law last year and will see the introduction of statutory timelines, Urban Development Zones, and judicial review reform, marking a significant move to streamline the planning process. While the Act has its critics, overall, it should enhance and support the development of housing in Ireland in 2025 and beyond.

Irish Development Land Market – Key Indicators

Source: CBRE Ireland

Peter Garrigan, Head of the Development Land team at CBRE Ireland commented: “it is encouraging to see a strong uplift in land sales in 2024. We expect strong competition for zoned lands in the year ahead and the overall number of sales should continue to improve.”

Darragh Deasy, Director on the Development Land team at CBRE Ireland commented: “there are a number of catalysts that should support the continued improvement of land sales in 2025. The introduction of the Planning and Development Act 2024 and the ambitious targets set by the draft National Development Plan should streamline the planning process and support housing and infrastructure development whilst potentially addressing the current issues of land availability. All factors that could stimulate an increase in intent from both sellers and buyers this year.”