Investment in Irish commercial property hits €1.3bn for first nine months
Total volume for 2017 could reach €2.5bn if a number of large transactions go ahead
100/101 Grafton Street, Dublin, which was bought by Irish Life for about €50m
Overall investments in the Irish commercial property market exceeded €1.3 billion in the first nine months of this year, according to agents JLL.
Turnover in Q3 reached €530 million, when the largest transactions were the €60 million off-market sale of an office block and the puchase by Irish Life of acquisition of 100/101 Grafton Street for about €50 million.
Hannah Dwyer, head of research at JLL Ireland, said the agent was still of the view that total volumes for 2017 would likely reach €2 billion to €2.5 billion, assuming a number of large transactions such as The Square in Tallaght (€233m) and the Gibson Hotel (€87m) closed before the end of the year.
Even if the turnover hits the highest projected figure of €2.5 billion, it will still be a long way behind the €4.5 billion recorded in 2016.
John Moran, chief executive and head of investment in JLL, said the supply of assets remained robust, and the demand from investors continued to surprise, with more core buyers from Europe in particular.
“While they are becoming more selective in terms of what they are bidding on we are still seeing interest, particularly for prime assets or those that have an asset management or refurbishment play.”
According to Moran, offices continue to be the focus for some investors.