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News Release

Dublin

JLL Ireland forecast a return to normal market conditions in 2017 – but watch out for risks.


​JLL Ireland’s annual property outlook briefing took place in Dublin this morning. The team of property advisors delivered snap shot updates from Agency, Investment, Residential, Land and the Alternatives – Hotels and Healthcare. 

For the office market demand is expected to remain strong and spread outside the city centre to the suburbs with rents stabilizing. From an occupational point of view Ireland should benefit from Brexit but need to be acutely aware that we are competing for occupiers against many other cheaper European cities.

Retail is changing in both format and quality of offer with the most successful locations / schemes being capable of captivating consumers with additional offers such as food, entertainment or leisure. Prime rents are expected to rise steadily during the year in the best high streets and shopping centres.

Supply remains the critical issue in the residential market and notwithstanding well-intentioned government initiatives more work needs to be done to improve the supply situation. Therefore house prices will increase between 8 & 10% this year and open market rents will continue to rise.

In the investment market volumes will fall back to a more sustainable €2bn turnover in 2017 with some value rises in the prime sector and performance this year will be largely dependent on income increases in portfolios. There will be further expansion of investment into alternatives such as healthcare, student housing and purpose built new private rented sector. Investor demand will remain strong with a balance of overseas and domestic buyers.

Concluding the briefing JLL Ireland, CEO & Head of Investment, John Moran, commented “as with 2016, economics and politics will be the chief disruptor in 2017 on a global scale. So the message is move slowly with caution and expect the unexpected”.

Over 200 developers, investors, landlords and corporates gathered at The Westbury for the annual outlook briefing from JLL.