At the mid-point of 2017, rental levels across all three core sectors in Dublin remained stable, while some slight yield sharpening was recorded in retail and industrial. Over the short term, strong demand from retail and industrial market players sees rental values trending upwards, with a further compression in yields.
Boosted by an extremely busy first quarter, total take up in the Dublin office market in the six months to June stood at 128,050 sq m. The market also saw a significant volume of space either signed or pre-let at the end of June, leading to expectations of a very strong performing second half of the year.
Approximately €775m, across 96 deals, was invested in Irish commercial property in the opening six months of 2017. Driven by smaller lot sizes and a lack of available stock, turnover was significantly down on the same period last year, however, investor appetite remains strong.
An estimated total of €17.7 billion transacted in the Irish property market in 2016, representing an annual increase of 12%. The residential sector accounted for the largest share of this spend, €11.6 billion, however, the commercial sector strengthened with transactions in the sector increasing 19% year on year.