Yields For Prime Build-To-Rent Property Investments in Dublin
Yields For Prime Build-To-Rent Property Investments in Dublin Harden to 3.85% As Demand Increases
Dublin, 1st Feb 2019 – Commercial property specialists CBRE have announced that yields for prime Build-to-Rent property investments in the Dublin market have now hardened to a new level of 3.85% as a result of strong investor appetite for this emerging asset class. This compares with 4.0% for prime office properties and 5.1% for prime industrial assets at present. The Build-to-Rent sector has now become a mainstream investment sector of the Irish market in its own right, having accounted for 30% of investment in Ireland during 2018, up from only 4% in 2015.
The volume of international capital looking to deploy in the Build-To-Rent sector in Dublin is at an all-time high, which in turn is putting pressure on prime yields, which have now hardened to a new low of 3.85%. As further transactions complete over the coming months and set new transactional evidence, we expect prime yields in this sector to compress further. The growth of the Build-to-Rent sector in Ireland has been phenomenal with more than €1.167 billion deployed in 2018 compared to just over €70 million when multifamily investment first materialised in the Irish market in 2012. In fact, investment in this sector is only compromised by a shortage of investible stock such is volume of capital looking to deploy. Interestingly, an increasing proportion of investors seeking to invest in the Build-to-Rent sector in the Irish market are now willing to look beyond core city centre opportunities and are focussing attention on good suburban locations on key transport nodes where viability and affordability are considerably better.
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 2017 revenue). The company has more than 80,000 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.
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