Real Estate
In 2026, the Irish real estate market will see the implementation of significant Government announcements and plans published in 2025, namely the changes to the PRS market announced in June 2025 and the housing measures in the new housing plan: Delivering Homes, Building Communities (2025–2030).
Private rented sector/build to rent
In June 2025, the Government announced a package of measures to “strengthen rent controls and tenancy protections” for new tenancies created on or after 1 March 2026.
We consider these measures in our briefing on PRS changes, video podcast on the measures' implications for investors and Government Q&A on PRS market reforms.
In the new housing plan, the Government reiterates its view that the new regulatory framework will stimulate investment in rental supply, help to retain existing landlords and provide certainty to the wider residential market.
These PRS reforms are central to build to rent, PRS and purpose-built student accommodation underwriting and will require primary legislation amending the Residential Tenancies Acts. The Government has committed to the changes commencing on 1 March 2026, making early publication of the Residential Tenancies Bill critical.
Purpose-Built Student Accommodation (PBSA)
The new housing plan contains limited new detail on student accommodation beyond reiterating a commitment to invest €100 million in delivering 1,000 extra student accommodation beds and to publish the long awaited strategy on student accommodation.
The strategy will aim to increase the supply of state supported student accommodation; reduce the cost of delivery through development of standardised design guidance; promote the efficient use of existing building stock; support balanced regional development; and promote digs accommodation. In a Dáil debate on 11 December 2025, the Minister for Higher Education stated that the strategy is expected to be submitted to Government in the coming weeks, with publication anticipated shortly afterwards.
In its Q&A on the PRS changes announced in June 2025, the Government confirmed that PBSA will be on a three-year rent cycle from 1 March 2026. PBSA investors have expressed concern that investors will not be attracted back into the market if rent resetting is not permitted for three years. Media reports indicate that the Department of Higher Education is pushing for the three-year rent cycle to be reduced to two so it remains to be seen how the Government will implement this measure in the Residential Tenancies Bill to be published shortly. The new student accommodation strategy is also expected to address PBSA rent reforms.
For more on this, see our briefing: Government publishes Q&A on PRS market reforms – PBSA to be on three-year rent cycle.
Short-term letting
The Government's Delivering Homes, Building Communities (2025–2030) contains a specific action (action 7.16) to develop new regulatory controls requiring short-term and holiday-lets to register with Fáilte Ireland with a view to ensuring that houses are used to best effect in areas of housing need.
The plan restates the Government’s intention to:
- Enact the Short-Term Letting and Tourism Bill by 20 May 2026 (the deadline for transposition of the EU Short Term Rental Regulation which focuses on short-term letting data collection and sharing); and
- Publish a National Planning Statement to provide guidance for local authorities when deciding on planning applications for short-term lets (STLs).
The new regulatory controls will include a Fáilte Ireland-managed register of STLs. From May 2026, all hosts offering STL accommodation for periods up to and including 21 nights must register with Fáilte Ireland, confirm planning compliance, and display a valid registration number when advertising on an STL platform.
For more on this, see: Short-term letting in Ireland – what you need to know.
Housing
The Government’s new housing plan, Delivering Homes, Building Communities (2025–2030), sets an ambitious target to deliver 300,000 homes by 2030, including 72,000 social homes and 90,000 starter home supports, underpinned by €50 billion in investment and major infrastructure upgrades.
2026 will see further measures to increase housing viability, availability and affordability, building on the tax measures announced in Budget 2026 which (amongst other measures):
- Reduce VAT for new apartment sales, construction services for new apartments and forward funding transactions;
- Provide an enhanced corporation tax deduction for apartment construction costs (which will also accommodate forward funding structures); and
- Exempt rental income from cost rental schemes from corporation tax.
The plan prioritises accelerating supply through zoning, regulatory reform, tax incentives, and modern construction methods, while addressing homelessness and vacancy, and creating sustainable communities. Crucially, it signals strong private sector involvement alongside State-led delivery.
The implementation of the Government’s Accelerating Infrastructure Report and Action Plan, published in December 2025, will be crucial to the delivery of the new housing plan.
We consider investor perspectives on the plan in our briefing: Delivering Homes, Building Communities 2025-2030: Investor perspectives
For a planning and infrastructure analysis of the plan, see our briefing: Housing development: Update on government action plan for housing delivery.
In the new housing plan, the Government reiterates its view that the new regulatory framework will stimulate investment in rental supply, help to retain existing landlords and provide certainty to the wider residential market.
From May 2026, all hosts offering STL accommodation for periods up to and including 21 nights must register with Fáilte Ireland, confirm planning compliance, and display a valid registration number when advertising on an STL platform.
The Recast Energy Performance of Buildings Directive entered into force on 28 May 2024. EU member states must transpose the Directive into national law by 29 May 2026. Accordingly, we expect the Government to progress the Energy Performance of Buildings Bill and other legislative measures to transpose the Directive in H1 2026 ahead of the May transposition deadline.
European Affordable Housing Plan
The European Commission published the European Affordable Housing Plan on 16 December 2025.
The plan proposes:
- Reduced VAT for new apartment sales and construction services for new apartments;
- Further regulation of short-term lets in housing-stressed areas;
- Revised State Aid rules for affordable housing;
- A new Pan-European Investment Platform;
- A European Strategy for Housing Construction to promote modern methods of construction and digitalisation;
- Streamlining and accelerating permitting procedures and reducing the administrative burden;
- Mobilising investment for student housing; and
- Expanding social housing.
2026 will see the implementation of the above measures. For more, see: Question and answers on the European Affordable Housing Plan.
Decarbonising the built environment
Energy Performance of Buildings Directive
The Recast Energy Performance of Buildings Directive entered into force on 28 May 2024. EU member states must transpose the Directive into national law by 29 May 2026. Accordingly, we expect the Government to progress the Energy Performance of Buildings Bill and other legislative measures to transpose the Directive in H1 2026 ahead of the May transposition deadline.
For more, see our Q&A briefing: How to get a Net-Zero Building Stock: Q&As on the Recast Energy Performance of Buildings Directive.
Energy Efficiency in Rented Property
The Government states in the new housing plan that it will explore new incentives to boost energy performance in the private rental sector, highlighting the Budget 2026 extension to 2028 of the income tax deduction for small landlords who retrofit.
The previous housing plan (“Housing for All”) committed to introducing a minimum BER for private rental property, where feasible but this measure is not specifically called out in the new housing plan. It remains to be seen if the Government will introduce a similar measure in the Energy Performance of Buildings Bill in 2026.
ESG/Green Clauses in Commercial Leases
2025 has seen a continuation of the trend towards incorporating ESG/green clauses into occupational lease arrangements in Ireland. We expect this trend to continue in 2026 with a continued focus on lease parties sharing environmental performance data to enable landlords to monitor and improve the environmental performance of buildings.
Arthur Cox LLP led the development of The Chancery Lane Project Green Clauses for Irish Commercial Leases published in February 2023.
Residential Zoned Land Tax
Budget 2026 introduced changes to the residential zoned land tax (RZLT) which have been implemented by the Finance Act 2025 (Section 103).
Landowners may request zoning changes for land designated for RZLT on the 2026 revised map (to be published by 31 January 2026). The submission window to request zoning changes will commence on 1 February and end on 1 April 2026. Local authorities must acknowledge the request by 30 April 2026 and notify decisions to the landowners by 30 June 2026.
