More Than €415 Million Transacted In The Irish Development Land Market During The First Half Of 2019
Signs of stabilisation in development land prices
July 12th, 2019 - Property consultants CBRE Ireland have today released figures for the volume and value of development land traded (both on and off-market) in the Irish market in the first half of 2019, which shows that 30 land sales were completed in Ireland in the year to the end of June, totalling more than €415 million between them. This compares to 66 transactions totalling €400 million in the first half of last year.
There has been increasing evidence of price stabilisation in the development land sector over recent months as developers react to easing house price inflation, affordability and rising build cost inflation. While we continue to see transactional activity being recorded and particularly strong demand for sites guiding up to €5 million, most of the land coming to the market and transacting at present comprises relatively small infill sites, meaning the overall spend on development land is likely to be down year-on-year, albeit consistent with spend in the 2014-2017 period.
In addition to developing out existing schemes, CBRE say that much of the focus in the development land sector at present is on design, consultancy and planning as developers prepare to lodge the next wave of planning applications and focus on potential rezoning opportunities in forthcoming development plans. As in other sectors of the commercial property market, much of the activity in the development land sector at present is occurring off-market.
Sites that are currently being formally marketed include:
A 10.46-acre site at Sandford Road, Ranelagh, Dublin 6, which is guiding €55 million;
The 125-acre Project Shoreline site at Baldoyle, Dublin 13, with planning for 546 houses, which is guiding €42 million;
A 3-acre site at Cross Avenue, Blackrock, which is guiding €20 million;
A 0.84-acre site at South County Business Park in Leopardstown, Dublin 18, which is guiding €5 million;
A 9.1-acre site at Kilbride House, Bray, Co. Wicklow, which is guiding €4.5 million
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