Commercial property turnover falls by 30% in second quarter

Turnover in the Irish commercial property market was €671 million in Q2, down 30 per cent on Q1, according to the latest research from BNP Paribas Real Estate Ireland.

Some €323 million was invested in the Dublin market in Q2, with prime offices making up 64 per cent of the total. Investor spend on Dublin retail assets was low in Q2, at just €10 million on six properties. This was partly due to lack of supply in the capital and the number of opportunities outside Dublin.

“This level of spend in Dublin retail can be considered unusually low/quarter specific with retail opportunities expected to re-emerge as a key theme over the next year,” says BNP Paribas.

Some €348 million was spent outside of Dublin – dominated by shopping centre sales – against a backdrop of improved retail sales and strong employment growth data.

Trend

Another interesting trend in Q2 was that 55 per cent of the investment spend was by domestic purchasers, with IPUT,

Irish Life

and private Irish investors very active in the market.

“Ten per cent of total market turnover was in the office sector outside of Dublin, a significant percentage, and once again an indication of the wider confidence in the economy and property market as a whole,” BNP Paribas said.