Pace of commercial property returns slow in Q2, but still up 1.9%
JLL index finds overall values increased by 92% since 2013, but still behind 2007 peak
John Moran of JLL: cited steady sustainable returns across all property sectors
The JLL Irish Property Index has shown increased returns of 1.9 per cent from the commercial property investment market in the three months up to the end of June, and a growth of 10.2 per cent over the past 12 months.
Though the pace slowed in the second quarter, the portfolio still exhibited sustainable growth rates across all market sectors. Capital values grew by 0.7 per cent in the quarter and by 5 per cent in the past year. For the second quarter in a row, capital value growth has been led by the industrial market: growth reached 0.8 per cent in the three months up to the end of June.
The index also shows that overall values increased by 92.4 per cent since the trough in the market in 2013 but still remains 36.8 per cent below the 2007 peak. According to JLL, while the overall income increased by 0.6 per cent in the past three months, growth was held back by some vacancies within the portfolio.
Chief executive John Moran said that though the rate of growth had slowed down, the performance in Q2 still showed steady sustainable returns across all sectors. Performing particularly well this quarter was the industrial sector, where capital values rose by 0.8 per cent in the three months and by 4.4 per cent over the year.