A new report by consultancy CBRE has revealed that €603 million (£516.9 million) has been invested in Ireland's commercial property in the first six months of 2013. This means that the momentum recorded in the second half of 2012 seems to be continuing.
The £516.9 million invested in the sector consisted only of deals that were more than €1 million (£857,152). In total, there were 34 deals struck larger than €1 million in first six months of 2013, compared to the 35 that were made in the entireity of 2012.
Marie Hunt, executive director at CBRE Ireland, said: “There is strong demand for prime Irish real estate, particularly in Dublin, as has been evidenced by the volume of transactions and the pricing achieved for some trophy assets over the first six months of 2013. Prime yields have contracted faster than was anticipated during the first six months of this year."
Major investments that took place in Dublin in the first half of 2013 include the sale of Clancy Barracks to Kennedy Wilson, the off-market sale of the La Touche House office investment to Credit Suisse, and the sale of an apartment investment off Baggot Street to an Israeli investor.
The past six months have particularly seen high demand for prime commercial property. Prime yields in Dublin now sit at 6.25 per cent, whilst retail units in the capital city stand at 5.75 per cent. The latter figure has been forecasted to rise toward the end of 2013.
Ms Hunt added: "The focus for the next few months will be to finalise the many transactions that are currently in negotiations and in legals, with a lot of new properties expected to be released for sale in the early autumn."