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News Release

Dublin

Investment into Irish Property hits €2.0bn this year

Continued signs that the property market is in recovery


​​There are continued signs that the property market is in recovery. So far in 2013, there has been €1.8 billion invested in Irish real estate. It is understood that there are a few deals close to signing in the next 2 weeks which will push totals to €2 billion for the year-end. This compares to total investment volumes of €557 million in 2012 and just €186 million in 2011. The market is now performing at levels similar to the peak (2005-2007), in terms of sales activity, supply of assets coming onto the market and investor interest.

The majority of demand we have seen in the last 12 months has come from overseas buyers, who see a real opportunity in Ireland’s real estate at the moment. With values overall for commercial property still over 65% lower than the peak, the potential high returns available are incredibly attractive to buyers looking to invest.

Hannah Dwyer, Head of Research said that “the investment market has had a very busy 3 months, with more money invested into Ireland’s real estate market this quarter, than annual totals over the last few years. Signs continue to point towards a market recovery, and there is no sign that investment activity is going to slow down next year. More banks are bringing assets onto the market, in particular NAMA, and we are seeing large portfolios that contain multiple properties being offered for sale in addition to smaller individual properties. These large portfolios have boosted total investment volumes for the year, with some achieving over €150 million in a single sale. There are a number of portfolios currently on the market which will not sign in time for the end of 2013, but will be sold at the beginning of next year. The momentum we have seen in the final quarters of 2013 is therefore expected to continue into 2014 and we may see investment into Irish real estate hit and possibly exceed €2bn at the end of next year.”