Irish property value increase smashes all previous records

on Jan 20, 2015
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A recent report published by JLL Ireland indicates that the Emerald Isle’s commercial property market went some way to dragging itself out of its post-crises malaise over the course of 2014. The report also shows that investor categories are evenly split at 50-50 between domestic and international actors, indicating high levels of across the board confidence from major property investors in the future of the Irish property market.

Hannah Dwyer, of JLL Dublin, describes the levels of sales value in the commercial real estate market as “quite astonishing”. With an increased level of capital being accessed by European investors it is likely that the Irish commercial property market will remain steadily active throughout 2015. According to the JLL report:
“2015 is likely to be another strong year for the Irish investment market. We do not expect activity to be at the same record-levels we saw in 2014, but volumes are likely to achieve €3bn. This is still significantly ahead of the 10-year average of €1.4bn”

A large element of the commercial property activity seen in Ireland during 2014 was that of investors looking to take advantage of direct asset sale opportunities which have been ongoing in Ireland since the restructuring of institutional bad debt became commonplace after the financial crises of 2008. Deleveraging by banks such as RBS and PTSB is still ongoing and can often attract more opportunistic investors than would typically have been the case in the past. However with the recovery of property prices in Ireland, JLL asserts that it expects assets to gradually return to more traditional investors in the Irish property market
As in the UK, Irish rental growth is expected to continue while supply issues are expected to increase prices further in 2015. According to the JLL report
“Supply issues for the office and industrial sectors is likely to drive further rental growth, and this in turn will underpin future capital growth”

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