Commercial Investment Market Overview 2022
A common theme dominating the various Irish Capital Markets and Investment Agents quarterly reports for Q1 2022, with the Residential PRS and Industrial/Logistics sectors the star performers. Strong demand continues in the Office and prime investment markets with reduced investment product restricting activity levels.
In this months blog, we include a brief overview below from Colliers, Director of Research, Kate Ryan. You can contact Kate or any member of the Colliers Capital Markets team on (01) 6333700 for further information.
Robust levels of activity in the Irish commercial property investment market continued in Q1 2022 with €762 million invested across 31 transactions. This represents a decline of 37% relative to Q1 2021 – a factor of a limited supply of core investment opportunities as opposed to weak demand.
Residential remains the dominant asset class, accounting for 50% of Q1 turnover. This was largely driven by the sale of the Project Ruby student accommodation portfolio which was the top deal of the quarter. There also has been strong demand for core office investment opportunities which are in short supply. Investors are attracted by a diverse and increasingly international tenant base who are taking up world-class offices both in and outside of Dublin. The delivery of new offices in regional locations is supporting increased tenant demand, evidenced by several significant FDI announcements in Galway and Cork in recent months.
Capital allocations to industrial and logistics are also increasing in Ireland in line with global trends. This sector has been relatively immune to the challenges of the last two years with immensely strong occupier demand and low supply driving rental growth and yield compression. Retail is also seeing increased interest however investors remain selective
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