LONDON — Cross-border investment in commercial property jumped sharply in the first half of 2026, with Europe attracting a significant share of international capital as investors returned to major markets and showed renewed interest in high-quality office assets.
Global cross-border investment in commercial property reached $71.8 billion in the first six months of 2026, a 56% increase compared with the same period a year earlier, according to research from property agency JLL reported by Reuters.
The increase was considerably stronger than the growth in the wider commercial property market. Overall building transactions rose by 10% year on year to $604.6 billion, based on separate data from MSCI.
Europe accounted for $39.9 billion of international property investment during the first half, representing a 31% increase, while investment into Asia rose fourfold to $19.3 billion.
The figures point to a stronger flow of international capital into commercial property, although higher borrowing costs could place limits on investment activity during the second half of the year.
Europe attracts more international property investment
The European market was one of the main drivers behind the increase in cross-border investment.
According to JLL’s figures reported by Reuters, international investment into European property rose 31% during the first half of 2026 to $39.9 billion.
Large European cities were particularly attractive to overseas investors.
Fraser Bowen, a director in JLL’s capital markets business, told Reuters there had been a re-emergence of the office sector, with international investors particularly active in cities including London and Milan.
The renewed interest comes after several years in which commercial property markets faced pressure from higher interest rates, changing working patterns and uncertainty over the future demand for office space.
The latest figures suggest that investors are once again willing to deploy capital into major European commercial markets, particularly where properties are regarded as high quality or located in established investment centres.
International capital is also flowing into Ireland
Ireland is not included in the $39.9 billion European figure as a separate number in the Reuters report, but other recent market data points to a strong increase in international investment in Irish commercial property.
Colliers reported in July that Irish commercial property investment reached almost €1.5 billion in the first half of 2026, an increase of 61% compared with the first half of 2025.
The second quarter accounted for €1 billion across 26 transactions.
International investors were particularly active. Asian capital accounted for 50% of investment activity during the quarter, while mainland European investors represented a further 24%. Irish investors accounted for 18%.
The figures show that international capital is not confined to London’s larger commercial property market.
Ireland is also attracting investment across several areas of commercial real estate, including industrial and logistics, residential, offices and retail.
Dublin sees strong international investor activity
Dublin has been a significant part of the recovery in Irish commercial property investment.
JLL reported that Dublin investment activity reached €1.01 billion across 25 transactions in the second quarter, more than double the €433.5 million recorded during the first quarter.
That brought investment for the first half of 2026 to €1.44 billion, representing a 54% increase compared with H1 2025.
International investors accounted for €826.5 million, or 82% of Dublin’s Q2 investment volume.
Investors from Singapore, Germany, France, the United States and the UK were among those active in the market.
One of the largest transactions was the €500 million sale of the Horizon Logistics Portfolio to a joint venture involving Singapore’s sovereign wealth fund GIC and Valor Real Estate Partners.
The transaction was a major contributor to the quarter’s investment figures.
Logistics and industrial property remain important
The recovery in commercial property investment is not being driven solely by offices.
Industrial and logistics assets accounted for 51% of Irish commercial property investment in Q2, according to Colliers, attracting €513 million across four transactions.
The Horizon Logistics Portfolio transaction was the largest contributor to that total.
The sector continues to benefit from demand for logistics space, particularly around Dublin, where limited vacancy and occupier demand have supported investor interest.
The broader shift towards e-commerce, distribution infrastructure and supply-chain investment has also helped make logistics property an important part of institutional real estate portfolios.
Residential investment also recovered in Ireland
Although the Reuters figures concern commercial property, Ireland’s residential investment market has also recorded stronger activity this year.
Colliers reported that residential investment reached €230 million in Q2, representing 23% of total Irish commercial property turnover.
Residential investment for the first half reached €479 million, which Colliers described as the strongest first-half performance since 2022.
The activity included transactions involving social housing, the private rented sector and student accommodation.
This distinction is important.
The global $71.8 billion cross-border figure reported by Reuters relates to commercial property investment. It should not be interpreted as a measure of international purchases of individual homes or the entire European residential housing market.
Offices begin to attract renewed interest
The return of international investors to office property is one of the notable features of the latest data.
For several years, the outlook for offices was affected by hybrid working and uncertainty over how much office space companies would ultimately require.
JLL’s latest assessment suggests investors are increasingly returning to the sector, particularly in major cities.
Dublin has also seen renewed office investment.
Colliers reported more than €187 million of office investment across eight transactions in Q2, with Dublin city centre accounting for 86% of office investment during the quarter.
The largest office transaction was the reported €110 million acquisition of One Molesworth Street in Dublin 2 by German fund MEAG.
Higher borrowing costs remain a risk
Despite the strong first-half performance, the outlook for the remainder of 2026 is less certain.
Commercial property investment is highly sensitive to financing costs because investors frequently rely on debt to fund acquisitions.
JLL’s Fraser Bowen told Reuters that investment volumes are closely correlated with interest rates and warned that higher borrowing costs could weigh on activity during the second half of the year.
Higher financing costs can affect both the amount investors are prepared to pay for assets and the number of transactions that can proceed.
That means the strong increase recorded during the first six months does not necessarily indicate that investment will continue at the same pace throughout the remainder of the year.
What the investment figures mean for European property markets
The rise in cross-border investment provides evidence of renewed international interest in European commercial property.
However, investment flows do not affect every property market in the same way.
Major cities such as London, Milan and Dublin can attract institutional investors because of their established commercial markets, infrastructure and availability of large investment assets.
Other markets may experience different levels of demand.
The composition of investment also matters. A rise in logistics or office transactions does not necessarily translate into higher investment in ordinary residential housing.
For households dealing with high rents and housing costs, the international investment figures therefore need to be considered separately from measures of housing affordability.
M10News has previously covered the pressure facing Irish households, including Irish House Price Growth Slows to 5.5% as Regional Differences Widen, which looks at the latest CSO residential property figures and the differences between Dublin and the rest of the country.
The commercial property market is a different part of the wider housing and property landscape.
Ireland’s property market attracts a diverse range of investors
The Irish figures suggest that international investment is coming from a broad range of sources rather than one particular country.
JLL’s Dublin data identifies capital from Singapore, Germany, France, the United States and the UK among investors active during the second quarter.
Colliers also recorded significant participation from Asian and mainland European investors.
The diversity of investors is significant because it means Ireland’s commercial property market is connected to wider global capital flows.
Changes in interest rates, investment strategies or economic conditions in other regions can therefore influence activity in Dublin and elsewhere in Ireland.
A stronger first half, but an uncertain second half
The first half of 2026 has produced a substantial increase in cross-border commercial property investment.
Global investment rose 56% to $71.8 billion, while European investment increased 31% to $39.9 billion.
Ireland has also recorded strong commercial property activity, with almost €1.5 billion invested during the first half, according to Colliers, and international investors accounting for 82% of Dublin’s Q2 investment volume according to JLL.
The figures point to renewed international appetite for European commercial property, including offices, logistics and other large investment assets.
But higher borrowing costs remain a potential constraint.
For Ireland, the first-half figures show that international capital remains an important part of the commercial property market, while the performance of individual sectors — from logistics and offices to residential investment — continues to vary.
The second half of the year will show whether the strong investment momentum recorded so far can be maintained as financing conditions and wider economic uncertainty continue to influence property markets.
