Galway’s commercial property market is showing resilience heading into 2026, with strong demand for office space, particularly in high-quality and out-of-town locations, while the retail sector faces more mixed conditions.
According to estate agents and auctioneers from across the city and county, the recent trends point to a market increasingly shaped by changing workplace patterns, ESG (Environmental, Social, and Governance ) standards, and a growing preference for accessibility over traditional city-centre locations.
Referencing the trends in the current commercial market, Ciara Lally of Rooney Auctioneers said, “commercial and office space has continued to perform well in 2025 with some familiar trends growing increasingly prominent going into 2026.” She noted that “new-build commercial units and those with high energy efficiency ratings are attracting the most interest as ESG standards are becoming a priority for many businesses."
Lally added that changing work practices have also influenced demand, with “many businesses refrained from ‘work-from-home’ practices and are returning to the conventional office workplace,” which “created an instant uptake of vacant space in Galway and excellent rental return for the commercial property investor.” In addition to this, Lally pointed to a shift in location preferences, saying there is “considerable interest in peripheral eastern locations such as Ballybrit, Parkmore, Claregalway and Oranmore, showing a market preference for accessibility and parking over a city centre presence.”
Ryan Hanly of HPS Real Estate echoed the strength of the office sector, saying “the office market remains particularly strong in Galway,” adding that “in Galway Technology Park alone we have recently completed seven office lettings over the past number of months.” He said “high-quality office accommodation continues to attract strong demand, with rents seeing moderate increases,” and noted “increased interest in office space outside the city centre, particularly in eastern Galway and surrounding regional towns.”
High street retail locations
However, Hanly cautioned that not all parts of the commercial market are performing equally. “Within the commercial sector we are still seeing a number of non-performing units across Galway where pricing expectations and property standards do not align,” he said. In retail, “in certain high street retail locations we are beginning to see a modest correction in rental values,” adding that “in many cases the quality of accommodation has not improved sufficiently to justify historic rental levels.”
Despite this, he said “secondary retail, particularly within retail parks, remains strong,” as “these locations offer accessibility, parking, scale and more modern accommodation, which makes them attractive to occupiers.” He also highlighted that “the refurbishment of previously vacant units within Galway Shopping Centre is a positive example of landlords upgrading stock in order to sustain rental levels.”
Shelagh McGann of Keane Mahony Smith said there “has been a noted uptake in office accommodation in the last 12 months,” but added that “the retail market is struggling a little presently.”
Development land
Meanwhile, the wider commercial and investment market continues to show momentum, particularly in development land. Shane McDonagh of O'Donnellan & Joyce Auctioneers, said “the commercial market throughout Galway city and the west of Ireland has proven to be resilient throughout 2025 and leading into 2026,” with “both the investment and development land market” persevering.
He said “demand for residentially zoned lands both within the city centre and larger county towns has increased significantly throughout the past 12 months,” adding that “the two driving sectors within the commercial market is without a doubt, the development land sector and general investment sector.”
O’Donnellan & Joyce reported strong activity across a range of transactions, including development land and multi-unit investments, with McDonagh noting that “the investment market proved to be resilient and gathered momentum throughout the year,” with properties attracting “strong interest from local and regional investors” and in some cases achieving prices “well in excess of the asking price.”
Looking ahead, the outlook remains cautiously positive. McDonagh said “the outlook for the remainder of 2026 remains positive with confidence increasing throughout all sectors,” though he warned that “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 be monitored.”
He added that “commercial property values are fluctuating depending on sectors while the land market appears to be outperforming all other sectors,” highlighting “an unprecedented demand for residentially zoned land with connection to services.”
Overall, while retail faces challenges and some high street rents adjust, Galway’s commercial market is being supported by strong office demand, active investment and a particularly buoyant development land sector as the city and county move further into 2026.
