Dublin shopping unit space is Europe’s second most expensive

DUBLIN is the second most expensive city in Europe behind London in which to rent prime shopping centre unit space, according to a new report.

The latest set of European market indicators for the commercial property sector; from property consultancy, Knight Frank; show that although shopping centre rents in Dublin have dropped — and are currently around €3,750 per square metre per year — they are still at the higher end of the scale. Only London is higher — with its annual shopping centre rents up to €5,556 per square metre — while Edinburgh is third most expensive, at €2,160 per square metre. The likes of Munich, Moscow and Brussels also clock in at well over €1,000 per square metre.

Knight Frank’s survey found that while commercial rents continue to grow across Europe, there has been little movements in yields in recent months. This, the company suggests, has dampened investor interest in shopping centre sites around the continent.

“Following a significant hardening of yields in many major cities last year, the lack of recent yield movement suggests that the market is pausing for breath, as investors remain cautious over the general economic outlook and find it difficult to identify value at the prime end of the market,” according to Matthew Colbourne, senior international research analyst at Knight Frank’s London offices.

Regarding Dublin, the survey also showed that prime industrial space rents — typically, units over 5,000 square metres — in the capital are down at €75 per square metre per annum, with an increased prime yield of 9%. Prime city area office rents, in Dublin, are currently around €376 per square metre, with prime yields up at 7.25%.