Commercial property lift

The high levels of investment activity already seen in the Irish commercial property sector this year, are expected to continue during the autumn months, with transactional activity involving pubs and hotels set to figure strongly.

Commercial property lift

Almost €1bn has been invested in the year to date and leading property consultant, CBRE claims in its latest bi-monthly sectoral update that momentum is only likely to continue as the year progresses.

“We continue to see prime real estate improving in value, as yields in almost all sectors of the market contract in response to the weight of capital chasing investment opportunities and expectations of future rental and capital appreciation,” said CBRE Ireland’s executive director Marie Hunt.

She added: “The ending of the capital gains tax waiver, at the end of this year, will undoubtedly put pressure on many vendors and purchasers to get property transactions completed by year-end.”

CBRE said that, while it remains to be seen whether the earlier budget, this year, will positively affect the retail sector, that sector is still seeing sales and leasing activity and signs of improvement are continually being seen across the entire commercial property spectrum.

Regarding the hotels and licensed markets, CBRE said “a very busy autumn is now in prospect, with some very attractive good quality hotel properties coming available for sale around the country”.

It added four new budget hotel projects are in the planning system, in Dublin, demonstrating the strength of demand in the capital.

CBRE has also called for the introduction of a similar scheme to the one which exists in Britain, where Government invests in secondary office building renovations; and has warned against Labour Party proposals to tax all vacant or undeveloped zoned sites, in the upcoming budget.

“Introducing such a tax, at a point in the cycle when development is not financially feasible, and development funding is scarce, will do nothing to meet the stated objectives of stimulating development or encouraging regeneration. In fact, this proposal has the potential to do the opposite and damage the beginnings of the market-led recovery that is slowly starting to emerge,” the company claimed.

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