As vacancy rates fall, Savills Ireland foresees strong recovery amid increasing corporate confidence and limited availability.
The damage wrought on Ireland’s office market by the Covid-19 pandemic and the resultant rise in remote and hybrid working appears to be abating.
New data from property advisor Savills Ireland indicates the Dublin office market is poised for a significant recovery in 2025, driven by rapidly falling vacancy rates, major corporate commitments, and surging demand for top-tier office spaces, according to a new report.
“Confidence has decisively returned to Dublin’s office market, driven by occupiers increasingly willing to pay a premium for high-quality spaces, especially those offering strong ESG credentials in CBD locations”
Savills latest Dublin Office Market Report reveals that the vacancy rate in Dublin 2, the city’s prime office hub, is expected drop sharply by year-end 2025 due to strong occupier interest and substantial pre-let activity.
Recovery in rents underway
Prime office rents in Dublin’s Central Business District (CBD) have already begun to recover, rising 4% year-on-year to €65.00 per sq ft in Q4 2024 – the highest level on record and representing the first quarterly increase since Q2 2022.
“Confidence has decisively returned to Dublin’s office market, driven by occupiers increasingly willing to pay a premium for high-quality spaces, especially those offering strong ESG credentials in CBD locations,” said Andrew Cunningham, director of Offices at Savills Ireland.
“With a significant proportion of upcoming supply already pre-let, we expect vacancy to tighten further, pushing prime rents upwards as corporates position themselves for growth.”
Major transactions reinforcing Dublin’s recovery include Workday’s reservation of 416,000 sq ft for its new European headquarters at College Square, and significant commitments from global firms like Deloitte, Stripe, EY, and BNY Mellon. These notable transactions underscore the resurgence in occupier confidence, particularly within professional and financial services sectors.
The report further highlights a trend towards larger office requirements, with the average deal size increasing by 57% year-on-year in 2024, signaling a return to expansive growth strategies among major occupiers.
“Looking ahead, Dublin’s office market is poised for renewed strength as global and domestic firms actively reengage,” Cunningham said. “Limited availability in premium locations will continue to drive rents and intensify competition for the best space, marking a decisive shift from recent market uncertainty.”
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