Modest growth continues in commercial property market
Sector returns rise 2% in third quarter and by 16.3% in last year, latest JLL index reveals
Hannah Dwyer, head of research at JLL, said the index results were strong year-on-year with double-digit growth across capital values and estimated rental values since the third quarter in 2015
The Irish commercial property market is continuing to show modest growth, with returns up by 2 per cent in the third quarter and by 16.3 per cent in the last 12 months, according to the latest JLL index.
Capital values increased by 0.6 per cent between July and September and by 10.2 per cent in the 12-month period. The improved results were driven by growth across all three sectors with industrial (+20.5 per cent) doing best in the last 12 months, followed by offices (+9.4 per cent) and retail (+8.9 per cent). Overall capital values have increased by 74.1 per cent since the bottom of the market, but remain 42.8 per cent lower than at the peak in the third quarter of 2007.
Hannah Dwyer, head of research at JLL, said the index results were strong year-on-year, with double-digit growth across capital values and estimated rental values since the third quarter in 2015. It was encouraging to see that on a quarterly basis the index also continued to perform positively with increases, although more modest, across all indicators, she said.
“This shows that the market is performing at more steady and sustainable levels, following a period of strong recovery and growth from the bottom of the market over the last two years. Although overall returns are now performing at better than peak levels, capital values remain 42.8 per cent lower than the peak.”