Ireland property sector sees €1.3 billion boom
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According to JLL, more than €1.3 billion of commercial real estate has been traded in Ireland so far in 2017, with €530 million traded in Q3 alone.
Figures from the global real estate giant revealed that the most significant transaction seen so far was the €60 million sale of an office complex in Dublin, while the second largest was a retail unit in Grafton Street, which was purchased by Irish Life for €50 million.
However, JLL has suggested that investments could increase further in the final quarter of the year, which is likely to be the strongest, due to the large number of real estate listings on the market set to close within the next three months.
One of these properties is The Square in Tallaght, which has a guide price of around €233 million, and The Gibson Hotel, which is expected to reach €87 million. With these figures added to the final projection for the year, Hannah Dwyer, Head of Research at JLL Ireland, has said the firm expects the 2017 real estate transaction totals in Ireland to reach between €2 billion and €2.5 billion.
Commenting on the figures, John Moran, CEO and Head of Investment at JLL, stated that they were encouraging with regards to the future of the Irish real estate sector, suggesting that the strong demand and large supply of impressive assets passing through the market could continue.
This is even more likely thanks to the strength of the core buyers across Europe, according to Moran, who suggested that they are continuing to show strong interest in prime assets or those with asset management or refurbishment play, despite becoming more selective in terms of their bidding.
Mr Moran also suggested that commercial property is likely to remain centre stage for major investors as the year progresses, with alternative markets drawing more interest from those seeking smaller investment opportunities. He continued: "Offices continue to be the focus for some investors, whilst others are branching into 'alternatives' in search of value."
However, Mr Moran stated that some specific markets within the residential market will also see growth within the final quarter of the year, potentially adding significantly to Ireland's transaction total for 2017. "In particular," he added, "this includes the Private Rented Sector for Residential, for which we're dealing with a number of active enquiries from clients. Both new and existing domestic and overseas investors to be active."