Investment property deals could hit €3bn

The value of investment property transactions in Ireland could hit €3bn next year, according to property consultants Savills Ireland market outlook.

The outlook has been boosted by Savills following strong results in 2013 when investment property sales worth almost €2bn took place, the highest since 2006.

Director of Investments at Savills Ireland Domhnaill O’Sullivan said that, if the correct market conditions come together, 2014 could see the highest ever level of transaction in the investment property sector.

“2013 exceeded all expectations in relation to investment volumes. At this point in 2014 there are approximately €750m of transactions agreed or in legals, and an estimated pipeline of around €600m coming to the market in the short-term.

“A significant volume of stock is still waiting to be traded and, if any of the banks currently holding large volumes of stock decide to de-leverage via large portfolio sales, we could see turnover reach record levels by the end of the year,” he said.

There are a number of factors driving the rush into property from the country’s exit from the IMF programme to a looming shortage of high-grade office space. Economist and director of research at Savills Ireland John McCartney said that the country’s recovery and rising employment have made Irish commercial property an attractive investment.