Irish Commercial Property Market heading for “Exceptional” Year

Posted on 7 July, 2015 by Cliff Goodwin

Although still €1.5bn (£10.6bn) behind its 2014 record, Ireland is expected to see around €3.5bn (£2.4bn) worth of commercial property assets change hands this year.

ID:81083870

According to a new survey from the global real estate services provider Savills  —  which describes the republic’s 2015 property market as “exceptionally strong”  —  almost €680m (£481m) of tenanted property was transacted across Ireland during April and June alone.

This robust end to the half year brought the six month total investment spend to over €1.7bn (£1.2bn), only marginally down on last year’s figure of €1.79bn (£1.26bn).

“While the value of investment turnover has remained relatively consistent,” explains the report, “transactional activity has increased dramatically with the number of deals tripling from 33 in the first half of 2014 to 102 in the first six months of 2015.”

Commenting on the figures, Savills director of investments Fergus O’Farrell, said: “The first six months of 2015 has been positive, not only because of the overall level of activity, but also because of the breadth and depth of market demand.

“We now have a wider and more diverse buyer pool to sustain the market with significant levels of turnover and volume,” he added.

Savills pointed out that unlike previous years, Irish Investors dominated the investment landscape by cornering almost 53 per cent of transactions. The main January to June players were Irish Life, IPUT, Davy, Green REIT and a considerable number of private Irish investors.

“It is also encouraging to see a range of new entrants coming into the Irish market,” Savills notes. These include German funds PATRIZIA, Union Invest and Real IS, all of whom made their first Irish acquisitions in 2015.

Not surprisingly, investors continued to focus on office and retail investments accounting for approximately €280m (£198m) and €259m (£183m) respectively.

And despite ongoing worries about the state of the property market outside Dublin, Savills added that more than 50 per cent of transactions during the first half of 2015 involved property way beyond the capital.

With a number of private equity investors questioning how strong the recovery is in markets outside Dublin, the latest Savills’ data — along with a similarly upbeat report from CBRE earlier this week  —  “suggests  the recovery is very real”.




Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Recent Posts

Interest Rates Impact on Commercial Property

Commercial Property Investment Outlook for 2023

The best places to stay on the Riviera

The latest property data has identified Newquay as the fastest property seller’s market in the UK

Investing in your garden can increase your property’s value

French Riviera temping high-end homebuyers

How can the ownership rights of my commercial property impact a business sale?

Should I incorporate virtual property viewings permanently?

Investment expected to increase across Asia-Pacific in 2021

UK property industry slows as the conclusion of tax break looms

BNP Paribas cautioned investors on Friday as debt-trading bonanza that increased its earnings this past year

Over 300,000 property purchases fell through in 2020 – we show the most frequent motives and the best way to get your house sale back on track

House Prices in the Capital Surpass £500,000

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants