Dominant Dublin drives up property investment 170%

Investment in Irish property assets rose 170% in the first quarter of this year above the same period last year — but 94% of activity was in the Dublin market, and as yields compressed investors “acquired assets across the risk spectrum”, according to Davy Research.

Over half of the €930m invested already this year went into the office sector, some €524m, noted Davy Research, which said it expect the fall in yields to soften during 2014.

Observing the start of sales of shopping centres, headed by the €253m sale of 73% of the Liffey Valley Shopping Centre to Hines and HSBC Alternative Investment, Davy noted that investors were acquiring assets “across the risk spectrum. There was increased activity in the core plus and value-add categories, as competitive pricing for Grade A assets pushed investors out the risk curve.”