Dublin office rents expected ‘to soar’ by 18%
The upgraded forecast, from property consultancy HWBC, suggests rents for prime Dublin office space will reach €65 per sq ft by the end of this year.
This would represent a more than doubling in rates in the past four years.
In its latest office market review, HWBC said that rents for Grade A office space in the capital rose by 22%, in 2015, to €55 per sq ft.
Since 2012 such rates have risen by 84%; driven by strong tenant demand and limited supply.
HWBC managing director Tony Waters said: “All the fundamentals remain in place to drive growth, with continued strong demand from FDI investors and domestic occupiers and an insufficient number of offices under construction, particularly with 50% of the available space already pre-let.”
That shortage of quality office space, in Dublin, remains a key challenge to economic growth, the company said.
“It hasn’t been talked about much during the general election but ensuring there is adequate high qualiity office space in place for Irish companies to expand and for more foreign investors to set up operations is a key infrastructure challenge,” Mr Waters added.
“There is also the secondary issue of ensuring that there is high quality and affordable residential accommodation that is of the type that the young and internationally mobile tech savvy employee will want to live in.”
HWBC also said that a clear result in today’s general election and a UK vote against ‘Brexit’ would be supportive for international investor sentiment here.
“New supply coming on stream from 2017 should help stabilise the market for occupiers and a steadier market is probably in the long-term interest of all stakeholders,” said HWBC director Jonathan Hillyer.
“Current uncertainties for the Irish economy include the general election and Brexit risk.
“A clear result in the election and a UK decision to remain in the EU would be supportive for international investor sentiment in Ireland.”
