Dublin office market booming, says report

There has been a major uplift in activity in the Dublin office market sector of the property market in recent months, according to a report released today by Property consultants CB Richard Ellis.

The level of office lettings in the capital in the first three months of 2006, at almost 45,000 square metres, is the highest level of Q1 take-up in three years and is more than twice the level of take-up in the same period last year, according to the Dublin Office Market View Q1 2006 report.

A number of major lettings have been signed in the capital since the beginning of the year, the most significant of which was the letting to Ebay of 6,960 square metres in Blanchardstown in recent weeks. This letting significantly boosted office take-up in the west suburbs of the city specifically.

The city centre and docklands area of the capital continue to be the most highly sought after office locations from an occupier viewpoint, accounting for more than half of office lettings agreed in Dublin since the beginning of the year, according to the report. With limited supply available for occupation, rental values in these areas are continuing to edge upwards as a result. The report found that prime office rents in Dublin in key locations are now in the order of €592 per sq metre per annum.

The publication also states that the west suburbs accounted for 25% of office lettings in Q1 2006.

“We noticed a major turnaround in confidence in the Dublin office market in 2005 and this momentum has followed through to the first quarter of 2006,” according to Marie Hunt, Director of Research at CB Richard Ellis.

“Demand is primarily being driven by Irish financial institutions and legal firms who are making location decisions on the back of strong economic conditions and positive employment data.

“All indicators suggest that the city centre office market in Dublin is likely to be the best performing sector of the Irish property market in 2006”.

This view is supported by James Mulhall, Director of Office Agency at property consultants CB Richard Ellis, who added “The strength of office take-up recorded in Q1 2006 is indicative of the strong market conditions that we are currently experiencing in Dublin and would suggest that as much as 185,000 square metres is likely to be signed in the city in 2006.”