Almost €2.1 Billion Transacted In The Irish Investment Market During The First Half Of 2019
July 12th, 2019 - Property consultants CBRE Ireland have today released figures for the volume and value of investment properties traded in the Irish market in the first half of 2019, which shows that 76 investment transactions extending to more than €1 million in value traded in the first half of the year. In total, investment spend amounted to €1.478 billion in Q2 2019, bringing total investment spend in the first half of 2019 to almost €2.1 billion. There were 7 assets sold in the Irish market during H1 2019 that exceeded €100 million in value, which boosted spend.
Recent guidance on interest rate movements bodes well considering the very substantial differential between 10-year bonds and real estate yields, which combined with economic, demographic and occupational factors makes a very compelling investment case for Irish real estate. On the back of this, there has been an encouraging volume of activity recorded in the Irish investment market over recent months (both on and off market) with strong demand continuing to prevail for prime assets. Despite the strong volume of investment sales recorded in the first half of 2019, transactional activity will be heavily skewed towards H2 in 2019 with the completion of several ongoing investment transactions having now carried over into the second half of the year. The fact that residential accounted for 43% of investment spend in the first half of 2019 and that three of the five largest transactions signed in H1 were residential investments is noteworthy.
CBRE’s research shows that approximately 70% of the almost €2.1 billion of investment spend in the first half of 2019 occurred in the Dublin market with office properties accounting for 37% of investment in the period. 44% of the investment in the commercial property investment market in the first half of 2019 was to Irish buyers. The largest investment transaction completed in the six-month period was the sale of the XVI residential portfolio to IRES REIT.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 150 employees, we work with occupiers, investors and developers of office, industrial and logistics, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie