The top commercial property agents in Ireland are predicting the market is set to rebound in 2012 with transactions worth up to €650 million expected to change hands. This amount represents a huge change from the €200 million in sales for 2011.
Foreign investors are leading the way, and prime office and retail properties are proving to be very popular choices. When other types of commercial properties, such as pubs, hotels and land are added to the mix, the final tally could include an extra €150 million in commercial transactions before the New Year.
The low sales figures for 2011 have been blamed on three factors: the economy, the euro, and uncertainty over rent reviews. This year, several factors have changed the outlook for investors, who now have greater confidence in the Irish market. Cuts in stamp duties, a clear signal on rent reviews, and fiscal discipline have all played a part in helping to get the market back on a positive track.
One of the major transactions completed recently was the purchase of the State Street Bank Building at Sir John Rogerson Quay. The property is believed to have sold for approximately €108 million. Another large transaction involved four blocks of offices located at AIB Bankcentre, Ballsbridge at a cost of just over €70 million, for a yield of €9.6 million.
The retail sector has also been active recently, with the Edward Square Shopping Center in Galway selling for €27 million. The sale represented a yield of about 8.7 per cent.
Several other office block sales are currently in the pipeline. Observers say it is possible that sales figures may inch closer to €700 million before the New Year. Pending deals include sales of the Bishop Square offices in Kevin Street, a Grand Canal Square office block which is expected to fetch €75 million, and a former Bank of Ireland head office in Baggott Street, Dublin.
Previous Post
Tech Firms Lead Banks in European Office Take Up
