The commercial market across Galway city and the West of Ireland has proven resilient throughout 2025 and into 2026. While certain markets may have stalled due to the ongoing political unrest within the Middle East, both the investment and development land markets have persevered.
Shane McDonagh, Partner of O’Donnellan & Joyce, commented, “demand for residentially zoned lands both within the city centre and larger county towns has increased significantly throughout the past 12 months. The two driving sectors within the commercial market is without a doubt, the development land sector and general investment sector.”
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, and a sale was finalised well above the asking price of €2,875,000.
Moving further west, a significant sale was a bespoke site in Truskey West, Barna. The site extends to 2.54 acres and contains two detached dwellings. The property was offered as a collective or as separate lots; however, the site was acquired for development due to its unrivalled location in the heart of Barna village.
Both Colm O’Donnellan & Shane McDonagh have recently conducted one of the largest land transactions within the city parameters over the past decade. The landbank exceeded 18 acres, of which a majority will be developed for residential housing.
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, Killrainey 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. The sale has recently closed well above its asking price of €720,000.
Moving back into the city centre, Shane McDonagh had a trio of sales within 100m of each other on Abbeygate Street/Market Street. A sale has been agreed for a landmark building, Century Buildings, 7-9 Abbeygate Street, which has been acquired for alternative use. The former Cookes of Abbeygate Street was previously sold by O’Donnellan & Joyce in 2021 and was resold by the same agent in 2025. Finally, a sale is being negotiated for the renowned “Finnegans” restaurant on 1-2 Market Street.
Outlook
The outlook for the remainder of 2026 remains positive, with confidence increasing throughout all sectors. The implications of factors such as the Residential Zoned Land Tax and the Amended Tenancy Act, effective March 2026, remain to be quantified and will need to be monitored. As noted, there is unprecedented demand for residentially zoned land with service connections. Having conducted several of the largest development land transactions in the city and county in recent years, we encourage potential vendors of similar development land to contact us for guidance.
Asset management is a vital “cog in the wheel” within the commercial market. Due to the hangover from the COVID pandemic, several rent reviews have been missed and remain to be addressed. It is prudent to monitor all rents and keep them up to date with market trends to maximise the value of your asset. Both Shane McDonagh and Niall Cuddy of O’Donnellan & Joyce have been retained by several SME’s and state bodies to negotiate historic and ongoing rent reviews.
The main takeaway from Q1 2026 is that commercial property values are fluctuating depending on sectors, while the land market appears to be outperforming all other sectors. For further advice, please contact Shane McDonagh, Colm O’Donnellan or Niall Cuddy of O’Donnellan & Joyce Auctioneers.
