Scarcity of large residential development sites being offered for sale according to CBRE
Dublin, 28th May 2015 – Commercial property consultants CBRE today released statistics on the volume and value of Irish development land sales over the last 15 years. While the number of land sales has been appreciating year-on-year since the market crash in 2009, activity in Q1 2015 was low, partly due to the fact that several agreed site sales had not closed by the end of the first quarter and will feature in Q2 stats instead. However, CBRE have warned that there is a severe scarcity of large residential zoned sites being offered for sale in the Dublin market at present, which is not helping efforts to generate much-needed housing supply.
Only 17 development land transactions totalling less than €72 million closed in the first quarter of 2015 although a number of transactions have since signed which will boost Q2 spend considerably. There continues to be a dearth of residential zoned sites being offered for sale in the Dublin market, with a particular shortage of large lot sizes. Demand remains strong with purchasers increasingly considering a range of potential end uses other than offices and residential, including student housing and hotel projects. Without an increase in the volume of land being offered for sale, however, it will prove difficult for developers to find sites to accommodate the volume of development needed to improve supply. 12 of the 17 sites that traded in Q1 2015 extended to less than 10 acres in size
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 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.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.