Ireland Commercial Property Investment Predicted to Hit €4 Billion in 2021
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Global real estate advisor JLL, which tracks transactions in the Irish investment market, reports this week that it traded € 1.5 billion in investment transactions in the second quarter of 2021. This is a particularly strong quarter and together with the first quarter indicates that € 2.7 billion in the first 6 months of the year.
In recent quarters, transaction volume has been dominated by PRS, logistics, and offices, accounting for 51%, 22% and 21% of the volume for the quarter, respectively. PRS continues to be the focus of investors, and the top 3 largest deals were PRS. These include: Royal Canal Park, Ashtown, Dublin, which was acquired by Union for € 200 million; The Dwyer-Nolan portfolio in North Dublin, acquired from Ardstone for € 181 million; and a confidential, over-the-counter transaction for 177 million euros.
Hannah Dwyer
Hannah Dwyer, Head of Research at JLL Ireland, said: “It is positive to see that investment in Irish real estate remains strong and activity in the second quarter reflects the strong demand we are seeing from investors, like at the beginning of the year There is particular interest in the PRS, Offices and Industrial sectors, with the fundamentals of the user markets driving investor interest in these sectors. PRS continues to be the top performing sector with no short term solution to the housing shortage in the entire region gives market driving price growth and interest. Annual spending on the Irish PRS market is € 1.5 billion and over the past 3.5 years totaled € 6.2 billion. This quarter was also for the Logistics sector particularly strong with 6 large deals Transaction volume of more than € 20 million. In the history of the Irish market there have only been 24 deals of this size. and a quarter of it took place in the last 3 months. This is fueling the demand we are seeing with strong inquiries from local investors for large prime logistics properties in Dublin. Any future product that becomes available in the best quality and in a good location near transport links is expected to have strong demand and pricing. “