Investment in commercial real estate in Ireland is expected to reach € 4 billion in 2021
Global real estate consultant JLL, who tracks transactions in the investment market in Ireland, reports this week that € 1.5 billion in investment deals were negotiated in the second quarter of 2021. This is about a particularly strong quarter and, combined with the first quarter, indicates that 2.7 billion euros were traded in the first 6 months of the year.
In recent quarters, transaction volumes have been dominated by SRPs, Logistics and Offices, accounting for 51%, 22% and 21% of quarterly volumes respectively. PRS continues to be the primary focus of investors, and the three biggest deals were PRS. These include: Royal Canal Park, Ashtown, Dublin, which was bought for 200 million euros by Union; The Dwyer-Nolan portfolio in North Dublin, acquired by Ardstone for 181 million euros; and a confidential off-market transaction for € 177 million.
Hannah Dwyer, Head of Research at JLL Ireland, said: “It is positive to see Irish real estate investment volumes remain high and second quarter activity reflects the strong demand we are seeing from investors. As expected at the start of the year, there is particular interest in the PRS, office and industrial sectors, with market foundations in occupancy markets attracting investor interest in these sectors. PRS continues to be the best performing sector, with no short-term solution to the lack of residential supply across the market, which drives price growth and interest. The cumulative spending in the Irish PRS market is € 1.5 billion, and over the past 3.5 years it has amounted to € 6.2 billion. This quarter was also particularly strong for the logistics sector, with 6 major transactions exceeding 20 million euros in transactions. There have only ever been 24 transactions of this size in the history of the Irish market, and a quarter of them have taken place in the last 3 months. This reinforces the demand we are seeing, with strong levels of investor investigation on the ground for large scale blue chip logistics assets in Dublin. Any future product available, of premium quality and well located near transport links, is expected to be subject to high demand and price. “