Commercial property activity slows dramatically as rate hikes bite 

Estate agent Sherry FitzGerald said investor activity was expected to remain subdued in the short term as interest rate uncertainty persists

Between April and June, there were only 26 transactions closing, bringing turnover to €333m, which is one of the lowest quarterly levels on record.

Commercial property activity has fallen dramatically during the first six months of the year, with capital spending running at less than half of 2022 levels, estate agent Sherry FitzGerald has said.

The company said the deterioration in the market reflects the continued rise in borrowing costs, which is evident in both the volume and value of acquisitions. The European Central Bank has increased rates by 4% since July last year with more increases expected at its meeting later this month.