CBRE Ireland today released its Irish Retail Market 2025 report, underscoring the critical role retail plays in the Irish economy and calling for renewed policy support to ensure its continued vitality.
Retail remains one of Ireland’s largest employers, with over 361,000 people working in the sector – 16% of the national workforce and 12% of GDP. Despite this, the sector is often underrepresented in policy discussions. CBRE is urging the government to honour its pre-election commitment to reduce VAT for food-led hospitality businesses, a move that would provide essential relief to smaller, independent operators facing rising costs and margin pressures.
The report highlights a robust consumer backdrop, with several key indicators reaching all-time highs:
- Employment: 2.8 million people in work nationally
- Annual Earnings: Median individual earnings in 2024 and €44,816 respectively, both all-time highs for the country.
- Household Deposits: €167 billion held on deposit
- Personal Consumption: €37 billion in Q1 2025
These figures reflect strong consumer spending power, even as preferences shift toward experience-led retail.
Leisure, Wellness & F&B Leading Leasing Activity
Consumer tastes continue to evolve, with a growing emphasis on leisure, wellness, and food & beverage (F&B). This trend is reflected in several high-profile leasing deals in Dublin this year:
- Gloria by Big Mamma signed a 20-year lease for 702 sq m at 41 Westmoreland Street
- Mowgli: The popular Indian street food brand, with a strong UK presence, has signed for 302 sq m at 41–46 South Great George’s Street on a 20-year lease, marking its debut in the Irish market.
- Mark Moriarty Studio will open a chef’s table and test kitchen at unit 4A Wilton Park, IPUT Real Estate’s new development.
- The Ivy Asia: The Ivy Asia signed a 25-year lease at No. 12 Dawson Street in March, with its opening planned for later this year.
Other upmarket F&B chains including Lina Stores and Joe & the Juice are actively seeking space in the city.
Prime High Street Vacancy Continues to Decline
Occupier demand for units on prime streets like Grafton St. and Henry St. has not only stabilised but has also become increasingly competitive over the past 12 months. There is a flow of new occupiers actively entering Dublin City Centre and vying for now relatively scarce prime retail space. The vacancy rate* is now just 4.4% and 6.4% on the two streets, respectively – with both rates down coming off double-digit highs during and in the aftermath of the pandemic.
New entrants include:
- Lovisa at 11 Grafton Street
- Arket at Grafton Place
- Normal, Accessorize, and Dylan Oaks on Mary Street, 19 Henry Street, and 1 GPO, respectively
Shopping Centre Leasing Remains Resilient
Take-up in Dublin’s prime shopping centres has remained steady throughout 2025, with footfall and trading performance holding firm. Notable deals include:
- Pandora signed for over 200 sq m at Dundrum Town Centre, where Zara is also expanding its footprint by 40% to over 3,500 sq m.
- Pull&Bear tripled its footprint to nearly 800 sq m, while JD Sports reopened its expanded 2,000 sq m store in July.
- Musashi and Wingstop signed leases at Liffey Valley Shopping Centre, which recently achieved a BREEAM ‘Outstanding’ rating.
- Blanchardstown Centre welcomed new tenants including Specsavers, Kiko, The Fragrance Shop, and Umai, with further investment expected under new ownership.
Supermarket Expansion Driven by Population Growth
- Recent CSO migration data shows Ireland’s population increased by 78,300 in the year to April 2025, reaching 5.46 million—a 57% rise since 1990. This growth is fuelling demand for grocery services, particularly in the Greater Dublin Area.
- Lidl Ireland continues to expand, now holding 14.2% of the national grocery market, up from 13.5% last year. New store openings include Carndonagh, Claregalway, and a flagship Net Zero Energy store in Maynooth, the first of its kind in Ireland.
Retail Park Development Challenged Despite Demand
- Retail parks remain the most in-demand retail format, yet no new standalone parks have been delivered in recent years. CBRE’s analysis shows a viability gap between construction costs and capital values, making development unfeasible under current conditions.
- CBRE is calling on planners and policymakers to address this gap, especially as housing delivery accelerates in regional areas. Supporting retail infrastructure will be essential to meet the needs of Ireland’s growing population.
Retail Continues to be the Most Invested Sector in 2025
- The sale of Jervis Street Shopping Centre attracted strong interest in Q3, with competitive bidding from a mix of international and domestic investors. The successful bidder, Pradera, is a new entrant to the Irish market and is reportedly paying €115 million for the asset—4% below the €120 million guide price—signaling continued confidence in Irish retail property.
Bernadine Hogan, Head of Retail at CBRE, said: “The Irish retail market continues to demonstrate resilience and adaptability. Vacancy rates on prime high streets are falling, and we’re seeing strong demand from both domestic and international brands. The volume and quality of recent leasing activity—particularly in the food and beverage sector with deals like Mowgli, Big Mamma, and Mark Moriarty Studio—reflect a sector that is evolving in line with consumer expectations.”
Colin Richardson, Director at CBRE, said:
“As Ireland’s population continues to grow, particularly in regional areas, it’s essential that planning policy supports the delivery of retail infrastructure. The current viability gap in retail park development is a real challenge, and unless addressed, it risks leaving communities underserved. At the same time, investor appetite remains strong, as evidenced by the competitive bidding for Jervis Street Shopping Centre. This signals confidence in the long-term fundamentals of Irish retail.”
Dan McLaughlin, Senior Director, Retail at CBRE, said:
“Food-led retail businesses are a vital part of Ireland’s retail landscape, yet many continue to operate on extremely tight margins. The government’s commitment to reduce VAT for this segment was a welcome pledge, and it’s essential that this reduction is honoured. Supporting these operators now will help sustain local employment and ensure the vibrancy of our high streets.”