Investors cash in on commercial property
Real Estate Alliance, made up of 40 independent auctioneers firms, said the market in general was steady and buoyant during the first six months of this year.
“The most significant trend to emerge in the past six months is the move by investors towards commercial investments and away from residential property, which indicates a soft landing is on the way for the residential market,” they said.
The alliance said an influencing factor for investors is the levelling off of supply and demand in the rental sector indicated by the slight fall in rent prices in the first six months of this year.
“A surge in foreign investment is also drawing investors away from residential property,” he said.
Real Estate Alliance chief executive officer Eimer O’Keeffe said whether the reasons are the drop in rent or they are lured to properties in other European countries, investors are heading towards the greener pastures of the commercial market.
“This is an indication of a soft landing in the residential market, especially in typical investor-style properties of two and three-bed apartments and townhouses, which will leave the way open for those hoping to get a footing on the property ladder in the coming months. Although the price of these properties is continuing to rise they are rising at a slower rate than we have seen of the past few years. I am hopeful that they will show signs of levelling of in the near future,” she added.
The alliance said in the residential property the starter and mid-range markets are especially strong with demand for houses in the €200,000 to €300,000 brackets at the top of the list for the first six months of this year. The constraints of the planning process ensures that ready-to-go development land is at such a premium sellers are slow to sell, holding on in anticipation of further price increases.
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