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News Release

Dublin

Overall Index Results positive in Q1 2013

The Jones Lang LaSalle Irish Property Index Overall Returns were positive for the 6th consecutive quarter, with a 1.8% increase in Q1 2013.


Overall Capital Values continued to fall with decreases of -0.6% in the quarter and -6.9% in the year. The greatest fall in Values was for the retail sector, which decreased by -2.3% in the quarter and -10.9% in the year. 

Overall Income decreased by -3.1% in the quarter and -7.8% in the year. Decreases in the Income Index are mostly due to lease expiries or retail store closures in the portfolio this quarter. Hannah Dwyer, Head of Research said that “the portfolio of properties used in the Index represents a typical investment portfolio with real properties across all sectors. The Index has been significantly impacted this quarter by the retail sector with some tenants going into liquidation, examinership or receivership. This has created vacancies in properties which are not therefore generating rental income. This is the reality across the sector and is occurring in investors’ portfolios.” She also added that “despite the decreases in income across the properties in the portfolio, the portfolio has a current income yield of 9.3%, which is protecting the investor somewhat from the value decreases.”
 

Rental Values fell across all sectors with a -3.2% decrease overall in the quarter. Retail ERV decreased most with a -7.0% fall in the quarter and -9.9% in the year. Hannah added that “Retail rents continue to be under pressure, with stabilisation only evident for prime rack rented units on main high streets and strong-performing centres. Other types of retail and other locations struggle in comparison. Office (-0.2%) and Industrial (-0.1%) Rental Values only recorded small decreases in the quarter which is reflective of greater stability in prime rents in these markets.”