The commercial market throughout Galway city and the west of Ireland has proven to be resilient throughout 2025. In the first quarter of the year, the commercial market stabilised after a slight correction in 2023-2024. Due to a combination of factors, including fluctuating interest rates and political uncertainty both locally and internationally, demand within the commercial sector was somewhat stagnant. The lack of supply on the market strengthened demand throughout the second half of 2025.
Shane McDonagh, who leads the commercial department within O’Donnellan & Joyce, commented: “We have witnessed another consistent year within the commercial market with strong demand across all sectors ranging from residential landbanks to multi-storey office buildings."
Review
With the supply of housing being at the forefront of the media and recent electoral debates, the demand for serviced development land is at a premium. O’Donnellan & Joyce conducted the sales of various sites within the city and county over the past 12 months. One of the largest land transactions outside of the city was that of 6.8 acres within the townland of Cullairbaun, Athenry. The land was fully zoned for residential development and positioned within 1km of Athenry town. There was strong interest from local and regional developers, while a sale was finalised well in excess of the asking price of €2,875,000.
Moving further west, a sale of significance was that of a bespoke site at Truskey West, Barna. The site extended to 2.54 acres and contained two detached dwelling homes. The property was offered as a collective or separate lots, however the site was acquired for development purposes due to its unrivalled location within the heart of Barna village.
Within the city centre, demand far outweighed supply. Having launched the property in early 2025, O’Donnellan & Joyce was delighted to conclude the sale of the iconic building at 1-3 Merchants Road. Formerly a high-end hospitality venue, the property has been vacant for a number of years and has been acquired by a renowned publican in Galway city. Although the property generated strong interest from those seeking a building for alternative use, the property will be returned to its former glory.
The investment market proved to be resilient and gathered momentum throughout the year. Shane McDonagh, with the assistance of Niamh Smyth, conducted the sales of a range of investment properties throughout Galway city, Galway county and Connacht. Within the city, the sale was recently agreed for a multi-unit development known as Mount Carmel, Salthill. The development comprised 10 self-contained apartments and a self-contained medical unit within Salthill village. The property was offered to the market with a guide price of €2,800,000 with strong interest from local and regional investors.
Continuing with multi-unit developments, KiIlrainey House in Moycullen also attracted multiple bidders. The development comprised four self-contained apartments on a large site within the village and offered further development potential. A sale has been agreed well in excess of its asking price of €720,000.
Moving further north, location proved to be the attraction for investors with the sale of Shop Street, Westport. The property comprised a standalone town centre building which was being sold with a sitting tenant. The property overlooked the renowned Octagon in the heart of Westport town. Similar to the aforementioned sales, the property attracted multiple bidders and a sale has been agreed in excess of its asking price.
Niall Cuddy, senior commercial property consultant with O’Donnellan & Joyce, was to the forefront of one of the largest office truncations within Galway city in 2025. One of the notable transactions in 2025 was the sale of Martin House, a modern office property in the well-established Dangan Business Park, extending to approximately 3,319sq m (35,731sq ft ) with 100 car parking spaces. The building was acquired by a national investor with plans to upgrade its BER from C2 to a targeted BER A early in the new year. O’Donnellan & Joyce has been retained as sole letting agent, with high-quality office accommodation currently available across three floors, offering flexible floor plates from 6,500sq ft to 14,000sq ft, and approximately 30,000sq ft in total. The building is scheduled for a full re-launch in 2026, and enquiries for prime office space in the Galway region are welcome.
Also within recent weeks, Niall Cuddy agreed the sale of Waterside House, a landmark property overlooking the Salmon Weir and Galway Cathedral. Extending to 527sq m (5,673sq ft ), the building was formerly used for offices and hostel accommodation and requires complete refurbishment. It attracted strong interest, particularly from short-stay and hostel operators, and following a competitive bidding process went sale agreed well in excess of the guide price to a private investor.
On the letting front, terms have recently been agreed on Unit 8 Dockgate, a modern, fully fitted office with views over Galway Harbour and the city. O’Donnellan & Joyce have also been retained as sole letting agents for Wolfe Tone House, a 9,020sq ft modern, fully fitted office on Fr Griffin Road with generous basement car parking. On the retail side, there is availability at Cearnóg Nua in Moycullen, including an 8,822sq ft fully fitted retail unit with a café and ancillary space, along with other units in the shopping centre ranging from 900sq ft to 3,700sq ft.
Outlook
The above examples outline the diverse range of sales that were successfully handled by O’Donnellan & Joyce within a 12-month period. The outlook for 2026 remains positive with confidence increasing throughout all sectors. The implications of factors such as the Residential Zoned Land Tax and Amended Tenancy Act from March 2026 are yet to be quantified and will need to monitored throughout early 2026.
O’Donnellan & Joyce has been instructed on a range of commercial assets which are due to be launched in Q1 2026. With the benefit of being based on the ground within Galway city along with having in-depth knowledge of the entire west of Ireland, O’Donnellan & Joyce has acted as a valuer and negotiator for national firms and State bodies from Limerick to Sligo.
Having being engaged to carry out several rent reviews and lease negotiations from the beginning of the year, there appears to be strong appetite from retailers and SMEs to remain active and present within the city centre and surrounding suburbs.
2025 has exceeded all expectations within the commercial sector and has proven that even in a time of uncertainty, demand for well-located commercial properties will outweigh supply. The main takeaway from 2025 and moving into 2026 is that commercial property values are fluctuating depending on sectors. Independent and in-depth valuations are paramount for both owner occupiers and tenants.
For further advice, contact Shane McDonagh or Niall Cuddy of O’Donnellan & Joyce auctioneers.
