House prices to rise before a fall, time for insurance deep dive, and €80m for docklands’ site

Business Today: the best news, analysis and comment from The Irish Times business desk

An aerial view of the Dublin docklands with a computer generated image of the proposed Brick Yards scheme

An aerial view of the Dublin docklands with a computer generated image of the proposed Brick Yards scheme

 

House price inflation is likely to climb to 12 per cent this year before falling back sharply in 2022 as supply comes on and affordability constraints kick in, the chief executive of DNG estate agents has said. Keith Lowe tells Eoin Burke-Kennedy that the current uptick in prices was being driven by Covid-related factors such as increased savings; the return of ex-pats; and “right-sizing”.

German bank Berenberg will loan ¤36 million to Irish group Elgin Energy to back the development of solar power projects in the Republic and UK.

Elgin is building solar electricity and power storage plants in Ireland, Britain and Australia, including spending €400 million in this country on generators capable of supplying up to 140,000 homes. Barry O’Halloran has the details.

All is not well in the Irish insurance industry, writes Ciarán Hancock in today’s Bottom Line column. It’s long past time for a deeper dive into the workings and culture of the insurance industry, he says.

Irish travel tech company CarTrawler is now generating over two-thirds of its pre-Covid revenue but says it does not expect to be back at 2019 levels until 2023 at the earliest. Speaking to Charlie Taylor, chief executive Cormac Barry says the company has now recorded eight months of consecutive growth as it sees continued recovery in travel.

The pandemic has affected women’s employment prospects more acutely than men, leading to a “she-cession”, a new study has found. Last year, women were 1.4 times more likely to say they were looking for a job than men, if people of a similar age and background were compared, researchers from NUI Galway and UCC say.

In Commercial Property, Ronald Quinlan reports that Savills has brought a landmark 8-acre site in Dublin’s north docklands to the market at a guide price of €80 million. Located on the East Wall Road, the Brick Yards was last offered for sale for €150 million in 2006 and comes with the potential to accommodate a scheme of 1,051 apartments.

Staying in Dublin, Fiona Reddan reports that a combination of secure rental income and long-term redevelopment potential is expected to see significant interest in the sale of the offices at 84-93 Lower Mount Street in the heart of Dublin’s traditional central business district.

Meanwhile, a range of investors are expected to express their interest in Manor West Shopping Park in Co Kerry. The scheme comes for sale fully occupied by a strong selection of international and Irish retailers at a guide price of €55,175,000. The sale of the property at that level offers the new owner the opportunity to secure a net initial yield of 8.81 per cent based upon the current rent roll, which is in excess of €5 million.

You can read all the rest of today’s Commerical Property news, here.

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