The level of investment activity in Irish commercial real estate for 2018 is on course to hit €3.5bn.

That’s the bullish forecast for 2018 from property advisors TWM, following a robust third quarter in which €615m worth of deals were completed. Approximately 130 transactions, with an average value of €19m each, were concluded in the year to date, bringing overall investment activity so far to around €2.5bn.

While TWM’s predicted turnover of €3.5bn for 2018 represents a significant increase on the €2.3bn it recorded for 2017, it is still well below the record €4.5bn in commercial property deals transacted in 2016.

The biggest deal so far this year saw Northwood secure €176m from Hutchison Whampoa Investors for Eir’s headquarters at Heuston South Quarter in Kilmainham, Dublin 8.

Commenting on the latest figures, Michele Jackson, director at TWM, said: “With over €600m worth of assets on the market and over €550m of deals agreed, the total forecast for 2018 looks likely to be well in excess of €3bn.

“The increase in activity reflects the strength of Ireland’s economic growth, and how favourably real estate compares to many other asset classes for investors.”