Investment From The Continent Pushes Up Irish Property Value

Posted on 3 March, 2017 by admin

The Irish property market could be showing the way forward for the commercial property in 2017 as a blend of demand from investors and large international corporations are expected to push values upwards for the next six months.

This is what has been conveyed from CBRE’s first bi-monthly report for 2017. There will be a considerable change in transactional activity across the commercial real estate market towards the last 6 months of the year compared to the first 6 months as “considerable activity behind the scenes” starts to move.

dublin-property-market-changes

Major corporations such as Facebook, AIB, IBA, New Relic, Allergan, Evershads, Indeed, WeWork and Huawei, are actively looking for office accommodation.

Currently there are 27 office schemes under construction according to CBRE, located in centre of Dublin. The plans total to 360,000 sqm, with the expectation that the number of new planning application for office space will reduce due to the amount already made available.

Marie Hunt, who is CBRE’s head of research, whilst viewing her expatiations for the market said, “Appetite for prime investment opportunities in the Irish market has intensified noticeably over recent months, with international core capital remaining active buyers, which could actually lead to some further hardening in yields for prime high street and prime office assets in due course.”

She added about Dublin and the office market, “The occupier markets continue to perform well, buoyed in particular by the strength of continued employment generation in the Irish economy. Worthy of particular mention is a notable increase in active requirements for office accommodation in Dublin over recent months, with several mandates in play at present including some that are specifically Brexit-related. Once Article 50 is officially triggered, demand is expected to escalate further.”

At the same time, the MSCI Irish Property Index, shows total returns in the Irish commercial property market reached 12.4pc in 2016. CBRE states that in the last eight quarters, the market pace as slowed to “more normalized trading levels.”

Moreover, the  report added that, “the biggest frustration,” that the market faced, is the “scarcity of prime product to satisfy investor appetite.”

Last year saw recorded sales come to €4.5 bn in the Irish commercial real estate market. This was a collection of highly valuable assets being brought such as the, Liffey Valley Shopping Centre and Blanchardstown Centre. The recorded sales are unlikely to be matched next year, as the number of significant “trophy” sales has reduced.

 



Related Posts


Leave a Reply


Recent Posts

bigstock-Speaker-at-Business-Conference-6newuse

Billions of Midlands investment to be showcased at MIPIM 2018

Northern Ireland Commercial Property boosts due to shopping centre sale

bigstock-View-Of-The-City-Centre-Of-Edi-95179379

Edinburgh needs developments to act as incentive for investment

spotify-news-story

Spotify in £1.18bn copyright lawsuit

market cart and supermarket view and parking

Toys R Us UK Stores Facing Administration

new-and-modern-warehouse

Amazon and other online giants changing the game in UK commercial real estate

Beers-In-A-Flight

British Pubs face closing due to soaring business rates

original_images_Google-entrance

Google new London HQ gets the go-ahead!

office-620817_960_720

Significant Increase in Female Self-Employment

Westfield_Stratford_City_interior

London Ranked the World’s Second Most Popular City for Retail Expansion

Havaianas_selection

Havaianas to Open a Pop Up Store at Leicester’s Highcross Shopping Centre

21025996740_ce194a6f8a_b

Amazon’s Newest Bookstore Opening in New York

pexels-photo-28883

Small Business Rates Relief Delays Affect Thousands of Businesses in the UK

Joy,_Albion_Street,_Leeds_(21st_December_2015)

Fashion Retailer, Joy, Rescued by Louche London in a Pre-packed Deal

1280px-John_Lewis_Newcastle

New Scheme to Help Part Time Workers Progress in Their Careers

Jimmy-Wales-the-GMG

Jimmy Wales Leaves His Position at the Guardian Board