In the first six months of 2014, a total of €1.37 billion has been spent in the Irish commercial property market. This is more than during the same period in 2006 at the height of the boom when the figure stood at €1.09 billion.
During the past six months, international real estate firms have shown a strong level of interest in Irish commercial property due to its relatively low prices.
Along with the offshore investors coming onto the market, a number of Irish-based Real Estate Investment Trusts (REITs) have also emerged to heat up the market.
Hibernia and Green REITs have been leaders recently, and the Canadian-backed IRES REIT recently bought the Marker Residences for €50 million.
CBRE notes, in its latest bimonthly research report, that there is an “extraordinarily strong volume of activity in the Irish commercial property market” and “there is nothing to suggest that the pace of activity will ease over the coming months”.
Fuelling interest further is the state’s bank is promise to bring a minimum of €250 million of packaged property portfolios to the market each quarter as it seeks to unload properties while the climate is right..
According to CBRE, yields across all property classes are doing well, from high street retail property at a minimum of 4.75 per cent to 8 per cent for industrial property. The property advisor has forecast that there could be up to €5 billion in property sales completed by the end of the year.
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