Residential development land value in Dublin soars
Industrial sector proved the strongest performing commercial property sector in 2016
The value of office development land in Dublin is forecast to rise by 12 per cent in 2017 after recording 17 per cent growth in 2016
Residential development land value in Dublin rose by 14 per cent last year and is forecast to grow by a further 15 per cent in 2017, according to a new forecast.
The Society of Chartered Surveyors Ireland’s (SCSI) latest survey indicates that prime office and retail rents in the capital will likely increase by 7 per cent this year.
Moreover, the value of office development land in Dublin is forecast to rise by 12 per cent in 2017 after recording 17 per cent growth in 2016.
Over 380 estate agents and chartered surveyors from all over the country took part in the latest survey, which reveals the commercial property sector in Ireland performed strongly last year with growth recorded across all sectors, albeit at a more moderate rate than in 2015.
The industrial sector proved the strongest performing commercial property sector in 2016, the report finds, outperforming both the office and retail sectors. The survey indicates this is set to continue this year as favourable capital and rental values remain in the sector.
Chartered Surveyors forecast a rental increase of 7 per cent in Prime Grade A property in the Dublin Region with a 6 per cent rise for most other office types. The anticipated level of growth outside of the capital is more moderate with a predicted increase of 4 per cent respectively for Prime Grade A and Prime 3rd Generation office rents in the Munster and Connacht/Ulster regions.
In the retail sector, prime retail zone A units in Dublin achieved rental prices of €5,876 per square metre in 2016, representing an increase of 12 per cent on the prior year. Rents for such units will likely increase by 7 per cent over the coming year. Growth in all other retail types is forecast to be in the moderate region of 4 per cent to 5 per cent.
Retail rents are also expected to increase by 8 per cent in the Leinster region, excluding Dublin, with a 5 per cent rise in Connacht/Ulster and a 1 per cent increase in Munster.