Research: Research by Jones Lang LaSalle provides a boost for Dublin's commercial property market. In a study to identify future winners and losers among 90 European cities, it ranked Dublin fourth.
The study, the European Regional Economic Growth Index (EREGI), focuses on factors that influence growth in the medium term and identifies cities in Europe where demand for real estate is likely to be strongest.
Dr Clare Eriksson, head of research at Jones Lang LaSalle in Dublin, says Dublin's ranking reflects its standing as a technology-rich city. She said: "After Paris and London, it is clear that technology is the most important determinant of future economic growth. The Nordic region, one of the most technologically advanced in the world, is well represented at the top of the ranks. For Dublin to outrank all but one of the Nordic cities is a considerable achievement."
On Dublin, the study comments: "Economic growth has substantially picked up in 2004 and prospects are favourable. The city authorities are putting substantial effort into infrastructure improvements, much needed to keep up with the rapid growth that Dublin has experienced in the last 15 years. Strengthening confidence has translated into a pick up in real estate speculative development."
In arriving at its rankings, the EREGI model combines growth factors, the level of wealth, and measures of the attraction of the business environment.
Growth measures (accounting for 60 per cent of final ranking) include the change in overall regional output and market services employment as the principal source of real estate demand. A measure of R & D spending captures innovation potential.
Wealth measures (20 per cent of final ranking) act as a screen so that cities catching up from a low base are not overly represented.
Business operating environment measures (20 per cent of final ranking) reflect how future economic strength is likely to be determined by the attractiveness of the business environment.
Dr Eriksson commented: "As is clear from its ranking in fourth place out of the 90 cities, Dublin scores highly on all three parts of the measurement criteria."
