Commercial property momentum continues in Ireland

It seems as though the commercial property market in Ireland is continuing to grow, after new CBRE figures revealed that €336 million (£286.8 million) had been invested in the sector in the first quarter of 2013.

After a nice increase in the second half of last year, the upwards trend seems to be continuing, as all of the 21 properties that were invested in the first three months of the year had a minimum value of €1 million (£853,574). The total figure of €336 million (£286.8 million) is actually much higher than what analysts had predicted at the end of 2012. This news has pleased investors and analysts as the total figure compares to the €545 million (£465.2 million), which was invested in the sector across the entire year in 2012, and so prospects look optimistic for the rest of the year.

Caroline McCarthy, executive director at CBRE Ireland, said: “Improving economic conditions coupled with the availability of attractively priced real estate in Ireland is continuing to attract significant overseas appetite and this is fuelling the investment sector and leading to some price rises for prime properties.”

Ms McCarthy went on to argue that more prime property assets will need to be put on sale in the next few months so that these increasing demands in the sector can be met.

In the first quarter of the year, major investments contributed towards this upwards trend. These included Dublin 2 on Bishop Square being sold to US-based King Street for €65 million (£55.5 million), four office buildings in the Irish Airlines Pension Fund, and two adjoining buildings on Grafton Street for €40 million (£34.1 million). Over half of all the transactions were office blocks.

Analysts will be keeping an eagle eye to see what the rest of the year will hold for the Irish market.