Commercial Property Ireland

The current year is one that is turning out to be a thriving year for commercial property in Ireland with market turnover projected to exceed EUR 1 billion by the end of the year which is a figure that was only in the past reached in the year 1999 when the economy of Ireland was booming. .

First Half Outcomes:

By the month of June, the commercial property market segment in Ireland had turn overs of around EUR 600 million, and times gone by prove to us that this turnover is normally even stronger in the second half of a year meaning that the projected EUR 1 billion could be considerably surpassed making for a record year for Irish commercial property.

Previous Property Value:

If one compares the previous property values as well as returns for the last couple of years, one can realize the growth and strength. In 2005 returns for the first quarter were 2%; in 2006 these figures grew substantially to 4.5%. In 2005 the value of property increased by just 0.3% in the first three months of the year, this year on the other hand the growth rate was a strong yet sustainable 3%. And when you contrast property returns to stock market returns, again the results are positive, last year saw minus equity return very low bond returns for instance.

Current Strengths of Investment:

Much of the potency and constancy in commercial property is resultant of the office sector which enjoys stable yields of up to 5%. These offices are mostly in Dublin, Kilkenny, Limerick, Waterford etc.

Current investors are mostly interested in the retail sector as well which has seen stable rental increases since the millennium. With low interest rates, high property values and a strong economy encouraging the general public to spend, retail outlets are doing well and demanding prime locations for which they are prepared to pay!