The requested news item does not exist. Please return to News
The Jones Lang LaSalle Irish Property Index Overall Returns were positive for the 7th consecutive quarter, with a 2.8% increase in Q2 2013.
Overall Capital Values increased for the first time in 5 quarters, with a 0.4% increase. The quarterly increase was driven by growth in Office Capital Values, which increased by 2.2% in the quarter. In comparison, Retail and Industrial Capital Values decreased by -1.7% and -0.5% respectively. In the last 12 months, Retail Capital Values have decreased by -9.8% which shows the continued pressures the sector is facing.
Rental Values increased overall by 0.6% in the quarter, highlighting the increasing stability in commercial occupier markets. This is only the second quarter since Q2 2008 that Rental Values have increased overall. In particular, there is evidence of stabilisations in office and industrial occupier markets, with market rental growth for both sectors recorded this quarter.
Hannah Dwyer, Head of Research said that “Continued stability in the Office sector has positively impacted Overall Capital Values and ERV this quarter. Office occupier and investment markets have performed steadily over the last 12 months with evidence of rental growth in the last 2 quarters and the first signs of value increases this quarter for prime product”.
Hannah also added that “Index results are more positive than previous quarters, and confirms the nascent recovery of the Irish property market. Although the Overall Capital Values and ERV results were positive, there are inconsistencies across the market. Office Capital Values and ERV have increased by 2.2% and 1.2% in the year, compared to decreases of -1.7% and –0.1% respectively for the Retail sector across the same indicators. The retail market continues to be faced with challenges such as low rents, store vacancies and underlining weak consumer sentiment”.
+353 1 6731665