2017 saw a sustained ascent in residential property prices in Ireland. Nationally, second-hand house prices grew by 8.4% during 2017, up from 5.2% in 2016. Price inflation took place at a marginally quicker rate in Dublin compared with the rest of the country, with prices in the capital increasing by 8.8%, in comparison to 7.9% outside of Dublin.
Irish commercial property saw another positive year in 2017, with moderate growth in rental levels combined with slight yield compression. Irish commercial property continues to look attractive, with continued robust demand in the office, industrial and retail markets.
The all-property C&W Fair Value Index score for Europe continued its downward trend, from 46 in Q3 2017 to 42 in Q4 2017, reflecting the advanced stage of the current property cycle and fewer attractive prime opportunities. Logistics remains the most attractive sector, with Dublin being amongst the most ‘underpriced’ European markets in Q4.
The following snapshots are the first in a series of quarterly bulletins, which provide an overview of the office and industrial markets in the Irish regional centres of Cork, Limerick and Galway. These snapshots analyse market sentiment, occupation and vacancy levels, development activity and rental performance in each location.