Commercial property consultants CBRE Ireland today released statistics on the volume and value of investment transactions completed in the Irish market in the first half of 2017, showing that a total of 97 assets with a value of more than €1 million traded in the first six months of 2017. In total, more than €775 million of investment transactions were completed in the first half of the year.
According to CBRE, the scarcity of core product to match volumes of underlying demand is continuing to frustrate investors and in turn is seeing some investors move up the risk curve in terms of asset allocations. This is manifesting itself in increased interest in alternative investment options such as Build to Rent and student accommodation as well as increased appetite for forward funding opportunities.
“Like many sectors of the Irish commercial property market, investment spend in the first half of 2017 is down year-on-year with very few sizeable assets having been launched for sale in the first half of the year. Indeed, 74 of the 97 transactions signed in H1 2017 extended to less than €10 million in value. We expect to see some sizeable assets being launched for sale over the coming months meaning transactional activity will be heavily skewed towards the second half of the year as we had anticipated. However, 2017 turnover will ultimately be dictated by the number of these transactions that sign by year-end with some of them potentially falling into 2018. We expect to see an increasing proportion of transactional activity comprising forward funding transactions, such as The Sorting Office opportunity on Cardiff Lane in Dublin Docklands that was formally launched for sale last week. Indeed, the largest investment transaction signed in the Irish market in the first half of 2017, (the sale of the 13-18 City Quay office building in Dublin 2) was a forward fund transaction.” said Johnny Horgan, Head of Investment Properties, Ireland.