A strong performance in the office sector has boosted the commercial property investment market in the first half of 2018, with transacted volume standing at €1.9 billion, more than double the same period in 2017.

But research by property company Lambert Smith Hampton found that while overall activity has been healthy, it was a mixed pattern across the sectors, with the office sector absorbing €862.3m of total transactions.

Of this, 90% went to Dublin, and two thirds of that was invested in the city centre area. Headline deals in the office sector included the €175m Eir HQ at Heuston South Quarter, the €164m Dublin Landings in the Docklands, and the €101m Beckett Building on East Road.

The alternatives sector, which takes in investments in assets such as student accommodation, leisure, healthcare, hotels and car parks, continued to grow rapidly, and in the first six months stood at €403.1m, accounting for 21% of investment volume. Of this, €359.5m was invested in the private rented sector.

At €210.3m, retail investment accounted for only 11% of total transaction volume, the smallest proportion since the second half of 2013, boosted by Deutsche Bank’s €147.7m acquisition of Westend Retail Park, Blanchardstown.

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Head of capital markets Paddy Brennan said: “This year there has been significant overseas investment in Ireland, with a number of the highest value assets purchased by investors from the USA, Korea and Hong Kong.

“The outlook for the Irish commercial property market for the remainder of 2018 is positive. Despite the post-deleveraging environment and the October 2017 rise in non-residential stamp duty, activity in the first half is only 17% lower than the 2017 annual total, spurred on by an increase in supply of large office assets, the strong office occupier market and the opportunities this presents for investors. We forecast that the 2018 annual total will reach €3 billion.”