09 Real Estate
Aoife Smyth Practice Development Consultant
2025 AT A GLANCE
- Housing remains the key policy priority for Government in the context of real estate.
- Detail is still awaited on significant proposed residential tenancy reforms, which include enhanced tenant protections, and new rules for large landlords and new apartment developments.
- Updated national planning guidelines for apartments, with streamlined processes for amending existing permissions, are a welcome development. However, legal challenges are currently slowing their impact.
- Budget 2026 announced a range of significant tax measures to stimulate housing supply, including reduced VAT on new apartments and enhanced corporation tax exemptions and deductions for certain development types.
- The modernisation of conveyancing practice recommended by the ‘Housing for All’ Expert Group has achieved some milestones this year, although 2027 no longer remains the target for eConveyancing adoption.
HOUSING: TENANCY AND PLANNING REFORM
Legislative focus in the real estate sector in 2025 remained firmly on housing. In fact, Government intervention in the housing market has intensified this year, with a series of legislative, fiscal and planning measures that collectively mark a more directive policy stance on housing delivery and rental regulation.
Extension of RPZs nationwide
The Irish Government passed emergency legislation in June to extend rent pressure zones (RPZs) across the entire country, with effect from 20 June 2025.
Pursuant to the Residential Tenancies (Amendment) Act 2025, all residential tenancies are now subject to a maximum annual increase in rent of 2% per annum or the rate of inflation (measured by reference to the Harmonised Index of Consumer Prices (HICP)), whichever is lower. This extension applies until 28 February 2026, at which point the reforms referred to below will become law.
Rent reviews are now also permitted nationwide on an annual basis – previously these were permitted only once every two years in areas outside of RPZs.
Residential tenancy reform
On 10 June 2025, the Government announced a significant package of proposed reforms aimed at reshaping the private rented sector (PRS). The measures combine an overhaul of existing rent control mechanisms with strengthened tenancy protections. Its stated objective is stimulating investment in PRS while improving security of tenure for tenants. The June policy document has been fleshed out by further guidance published in November. The proposals draw key distinctions between large and small landlords, and between existing rental stock and newly built properties.
Under the proposed framework, landlords with larger portfolios (four or more rental units) will be subject to specific rules, while smaller landlords will benefit from more flexible arrangements. The following summarises the position as announced for larger landlords, pending publication of the detailed draft legislation (the Residential Tenancies (Amendment) (No. 2 Bill), which is expected imminently.
Rent reform: For new tenancies entered into after 1 March 2026 (New Tenancies), a maximum annual increase in rent of the lower of 2% per annum or the rate of inflation measured by the Consumer Price Index (CPI) will apply. Existing tenancies will also be subject to this cap. Newly built apartments and student-specific accommodation (SSA), defined as developments where a commencement notice is lodged with planning authorities on or after 10 June 2025, are exempt from the 2% cap, and rent increases for these properties will be permitted in line with increases in the CPI.
Landlords of New Tenancies will be able to reset rent to market rates between tenancies, where the tenant leaves voluntarily, the tenancy is terminated for tenant breach, the property no longer meets the tenant’s needs, or at the end of every six-year “tenancy of minimum duration”. It appears that SSA owners will be permitted to reset rents to market every three years, but not on each new student licence. Further detail is awaited on these measures.
Tenant protections: Landlords will no longer be entitled to terminate a tenancy where the tenant has complied with their obligations, except in “very limited circumstances”. These protections are to be linked to a new statutory concept of six-year rolling “tenancies of minimum duration”. For large landlords, it seems that termination of tenancies of minimum duration will only be permitted for tenant breach or unsuitability of the property to the tenant’s needs and, notably, substantial renovation will not be a permitted ground.
Rent register: Rental amounts for each tenancy are to be included on a public rent register, to be maintained by the Residential Tenancies Board.
Overall, these proposals represent a substantial recalibration of the balance between landlord flexibility and tenant security. Much, however, will depend on the detail of the implementing legislation, which the Government has indicated will be published in the coming weeks.
New planning guidelines
On 8 July 2025, the Minister for Housing, Local Government and Heritage (the Minister for Housing) and the Minister of State for Local Government and Planning jointly issued the Design Standards for Apartments - Guidelines for Planning Authorities (the Guidelines), pursuant to section 28 of the Planning and Development Act 2000 (as amended). The Guidelines set out national planning policy for apartment development, reflecting current Government priorities and the revised legislative framework introduced by the Planning and Development Act 2024.
Key provisions address apartment mix, internal space standards, dual aspect ratios, floor to ceiling heights, stair/lift core ratios, storage, and amenity spaces such as balconies and patios. The overall aim is to balance regulatory standards with increased housing output, ensuring quality while supporting viability.
The Guidelines apply to all planning applications submitted on or after 8 July 2025. The Guidelines are subject to a widely reported legal challenge on the grounds that they were introduced without a Strategic Environmental Assessment having taken place. The substantive hearing of the case has been listed for hearing before the Planning and Environmental Court on 2 December, and the Guidelines remain legal in the meantime. However, the Government recently indicated that, whilst continuing to defend the challenge to the Guidelines, it intends to prepare a draft national planning statement with a view to replacing the Guidelines and bringing closure to the matter. For those with applications ready to submit, these circumstances bring unwelcome confusion.
Amendments to existing permissions
The Planning and Development (Amendment) Act 2025, which became law in July, will permit developers to amend existing planning permissions to incorporate the updated Guidelines. It introduces provisions allowing developers with an existing planning permission to build smaller apartments and, as a result, a greater number of apartments within the same scheme without having to submit a fresh planning application. To do so, a developer will be able to apply for a “permitted modification”, which the relevant planning authority must determine within eight weeks. These changes represent a step toward streamlining the planning process for housing delivery and reducing regulatory friction for projects already in the pipeline. At the time of writing, however, the relevant legislative provisions have not yet been commenced.
While the full impact of these various housing policy initiatives (including the tax interventions listed below) will depend on implementation and market response, they reflect a clear policy trajectory towards greater state involvement in shaping both the supply and operation of Ireland’s housing sector.
HOUSING: BUDGET 2026
Budget 2026 contains a number of taxation measures designed to stimulate housing supply, as follows:
Change in VAT on the sale of new residential apartments: From 8 October 2025 to 31 December 2030, VAT is chargeable at 9% (as opposed to the previous 13.5%) on the sale of certain immovable goods as residential apartments. Further details will be provided in the Finance Act 2025, which is currently moving through the legislative process.
New corporation tax exemption for cost rental income: An exemption from Irish corporation tax for rental profits arising from cost rental homes has also been introduced. It will apply in respect of properties designated as cost rental by the Minister for Housing from 8 October 2025. The exemption is intended to accelerate the delivery of affordable homes to the market and to incentivise investment in this space.
Enhanced corporation tax deduction for apartment construction costs: An enhanced corporation tax deduction was announced for costs incurred on the construction of apartment developments and the conversion of non-residential properties into apartments. The Budget materials note that the measure will allow an enhanced corporation tax deduction of 125% of the qualifying costs, up to a maximum additional deduction of €50,000 per apartment unit. The proposed deduction will be subject to several conditions and will be available for projects for which a commencement notice is submitted between 8 October 2025 and 31 December 2030.
Residential Development Stamp Duty Refund Scheme: This scheme is extended by Budget 2026 until 31 December 2030. It provides for a partial repayment of stamp duty paid on the acquisition of non-residential land that is subsequently developed for residential purposes. Certain positive changes were also announced to the time limits relating to commencing work and completing development. These have both been extended from 30 months to 36 months, which should enable more taxpayers to avail of the refund scheme. It will also be possible to claim a full stamp duty refund in respect of a multi-phase development at the commencement of the first phase of that development.
Residential Zoned Land Tax (RZLT): The Minister for Finance announced the provision of a further opportunity for landowners to make a submission requesting a change in the zoning of their land (which currently appears on a local authority’s revised RZLT map for 2026). Subject to making this submission, this could potentially result in the relevant site being exempted from RZLT for 2026.
New Derelict Property Tax: A new Derelict Property Tax was announced in October. This new tax will be collected by the Revenue Commissioners and will replace the existing Derelict Sites Levy. It will not be operative until 2027 at the earliest and it is envisioned that the rate will be no lower than 7%. The new tax is expected to be legislated for in next year’s Finance Bill.
NEW HOUSING PLAN
The Government’s new housing plan, Delivering Homes, Building Communities 2025-2027 (the Plan) was published on 13 November. While the Plan includes several material changes for PRS investors and developers – particularly those focused on multi-unit apartment schemes – many of these changes had already been announced over the course of the year, as reported on above.
The key features of the Plan not already referenced here include:
- a strong emphasis on unlocking infrastructure constraints that have slowed housing delivery, to include the introduction of a new €1bn Infrastructure Investment Fund and dedicated national structures to accelerate enabling works
- a renewed focus on student accommodation, with a Student Accommodation Strategy 2025–2035 to be published shortly, aimed at significantly expanding purpose-built supply and reducing the number of students competing in the private rental market
- the scaling up the role of the Land Development Agency, with an additional €2.5bn in equity funding and an expansion of its remit to cover a wider geographic area, acquire more public and private land, and invest directly in enabling infrastructure
While the full impact of these various housing initiatives will depend on implementation and market response, they reflect a clear policy trajectory towards greater State involvement in shaping both the supply and operation of Ireland’s housing sector.
CONVEYANCING PRACTICE REFORM
We reported last year on the final report of the ‘Housing for All’ Expert Group on Conveyancing and Probate. 2025 has seen this plan for modernising conveyancing begin to move from policy to delivery, with the establishment of an implementation group (the IG) comprising representatives from a number of stakeholders. The main objective of the IG is to progress the adoption of the overall target of an eight-week process for residential conveyancing, as well as develop a full implementation plan for the remaining recommendations.
By way of summary on some key updates:
Legislative/procedural changes: The IG has agreed to prioritise the introduction of electronic “statements of truth” to be used as an alternative to wet ink statutory declarations. This will require legislative amendments, which are under consideration. The IG has made less progress regarding the suggested removal of the requirement for wet ink signatures on the transfer of title to real property and acknowledges that this will require development of the requisite digital infrastructure. According to the interim report of the IG, Tailte Éireann has indicated that it is currently in the early stages of a procurement exercise aimed at enhancing their digitisation capabilities.
Performance targets and services from financial institutions and local authorities: This is one area where there has been some material progress. The Central Bank of Ireland’s revised Consumer Protection Code will require banks, retail credit and credit servicing firms to deliver title deeds to customers within ten working days, with effect from March 2026. Local authority responsiveness is also to be standardised, with a national portal (MyCoCo.ie) being rolled out to centralise taking‑in‑charge requests and payments.
Access to planning information: Planning information turnaround is also to be prioritised at a local authority level, though legacy ‘look‑back’ issues persist where older records are incomplete. To mitigate this risk, the IG has recommended that Government consider legislating for an “established non‑conforming development” concept, reducing the need for retention applications and facilitating certification of good and marketable title.
eConveyancing: Recognising its scale and complexity, the IG’s recommendation is for delivery of e-conveyancing to be designated to a defined Government entity. The IG strikes a balance between recognising the benefits of e-conveyancing whilst also acknowledging its challenges. In so doing so, it is recognised that the original implementation target of end-2027 was ambitious, and it is now the subject of further review.
Registration gap: Last year’s report recommended conducting a cost-benefit analysis of a dedicated project to secure registration of the estimated 300,000 Irish titles that remain unregistered. However, it has been agreed to defer the implementation of this recommendation to allow Tailte Éireann to first manage its casework of ongoing first registration applications.
CASE LAW
There have been no groundbreaking real estate judgments emanating from the Irish courts this year. However, one high profile judgment which is very instructive on fundamental conveyancing law principles is that in the case of Wachman v Barne Estate Ltd [2025] IEHC 491. In this case, the High Court found that alleged purchasers of lands had failed to establish that an enforceable contract for sale had been concluded. In the course of his judgment, Barrett J ruled that a number of propositions were settled by authority regarding the formation of a binding contract for the sale of land, including the following:
- Irish law applies an objective test to contract formation. The key concern is what the evidence would convey to a reasonable and informed person, disregarding private intentions or unspoken reservations.
- Parties can leave certain matters for future agreement and still form a binding contract, though the more important the term, the less likely it is they intended to defer it.
- In a commercial setting, there is a presumption that parties intend legal relations, but this can be rebutted on the evidence.
- Oral agreements, even for the sale of land, can be binding unless statute requires it to be in writing.
- A land purchaser may nominate another entity to take title.
- If the parties anticipate signing a formal contract later, it is a factual question whether signing was a precondition to formation or merely a formality.
- The later use of ‘subject to contract’ language does not nullify an agreement already formed.
- Post-contract conduct may be considered in the interpretation of terms where there is ambiguity.
- Post-contract behaviour may shed light on whether a particular stipulation was a condition precedent to contract formation or a mere term, particularly where no inquiries are made about fulfilment and failure is not promptly raised.
The appendix to the judgment also sets out a detailed summary of the principles governing written evidence of a contract for sale of land. These propositions and governing principles are a useful reference point for anyone dealing in commercial property.
LOOKING AHEAD
- The Residential Tenancies (Amendment) (No. 2) Bill is expected before the end of the year, or in early 2026.
- Outstanding provisions of the Planning and Development (Amendment) Act 2025 should be commenced in 2026.
- The High Court will deliver its decision in the legal challenge to the ‘Design Standards for Apartments - Guidelines for Planning Authorities’. We may also see the Government replace the Guidelines with a national planning statement.
- As well as the various housing-related developments discussed above, the Government’s Autumn 2025 Legislation Programme contains a number of real estate related bills.
Two key priority items which we expect to see progressed over the coming months are:
- Short-Term Letting and Tourism Bill: This will provide for a new register of short-term and holiday lets and implement the Short-Term Rental Regulation (EU) 2024/1028. This will need to be accompanied by revised planning regulations so that the new regime can be fully understood, including its impact on current short term uses.
- Energy Performance of Buildings Directive Bill: This will transpose the recast Energy Performance of Buildings Directive (as reported on last year). Full transposition of the Directive is required by 29 May 2026.