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Signs of rise in property invest market

Wednesday, October 03 10:11:10

There was a marked rise in the volume of investment spending in the Irish commercial property market in the first nine months of 2012, albeit from a very low base, according to figures from consultants, CBRE.

It said that there were 18 individual investment transactions of more than E1 million each signed in the Irish market in the first nine months of 2012.

This compares to 8 transactions of over E1 million in value completed in Ireland in the entire year in 2011 demonstrating the fact that more investment product has come to the market in the last number of months.

CBRE said that this is now translating into transactional activity.

In total, according to CBRE, just over E270 million of investment transactions have been signed in Ireland in the year to the end of September 2012, when transactions of greater than E1 million in value are included.

The investment spend in the first nine months of 2012 is higher than the volume of investment in the Irish market in each of the last three years. Although the purchasers of these assets comprised both local and overseas investors, buyers from outside the jurisdiction accounted for the greatest proportion of spend; with more than 71pc of the investment spend in the first nine months of the year being accounted for by overseas investors. 64pc of investment spend in the first three quarters of 2012 comprised office properties. A further 15pc comprised bulk residential investments; 11pc comprised industrial properties with 9pc comprising retail properties.

CBRE's analysis considers transactions of more than E1 million in value. However, a significant number of transactions of less than E1 million in value are also being negotiated at present. Indeed, according to CBRE, only six of the 12 investment transactions completed in the last three month period were greater than E1 million in value.

There are a number of investment properties being marketed and under offer at present, including a number of relatively large lot sizes, which if completed by year-end could boost annual investment turnover for 2012.