Commercial property market finally finishes firefighting
Irish investors muscled past foreign investors in the 3rd quarter
The largest commercial property transaction of the year in the State was the forward funding by Irish Life of the €126.3 million construction of a new headquarters for Grant Thornton at City Quay in Dublin.
The commercial property market is thriving again. After almost a decade of dealing with distressed debts, excessive borrowing and a defective banking system, a great many property funds are now benefiting greatly from rising property prices, offering attractive growth and decent yields, with many swelling into multimillion-euro portfolios.
Bill Nowlan, a property expert and one of the founders of Hibernia Reit, sees 2017 as “the first year in almost a decade when the commercial property emergency services have not been fighting fires”. He says the backlog from the economic crash of distressed property situations has largely been cleared. Equity funding has taken back its rightful place as the driver of the industry as opposed to excessive bank borrowings. “Commercial property values are now at realistic levels that balance supply and demand.”