MORE than €100 million was invested in the Irish commercial property market during the first half of this year – about €10m more than the levels for the whole of last year and highlighting a potential recovery in the sector.
The latest bi-monthly report on the state of the market by the Irish division of international commercial property consultants CB Richard Ellis Group (CBRE) shows that levels of activity in the Dublin office market have improved in the last couple of months as has demand from overseas investors and occupiers.
“In the same way that international investors are focused on finding prime investment opportunities in Ireland, we are seeing demand from a range of international occupiers to locate in the Irish market,” said CBRE Ireland managing director Guy Hollis. He attributed this to falling rents and wage costs and the 12.5% corporation tax rate for overseas firms. “The fact that the unemployment rate is relatively high, at 12.9%, is also viewed as a positive by many potential occupiers on the basis that there is a greater pool available than previously.
“Although the decline in property values in the most recent cycle was more severe than ever experienced, we have to remember that this is a cycle and, based on what we’re now seeing in the Irish commercial property market, it’s one which we’re slowly starting to emerge from,” added CBRE’s director of research Marie Hunt.
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