Office demand in Ireland is expected to continue to remain strong, although supply issues could become apparent in the next 12 months with limited choice for occupiers.
This is according to JLL Ireland’s annual property outlook. Whilst there is significant construction underway, the trend for pre-lets continues, with limited new and vacant space delivered to the market in the next 12 months. JLL expect office rents to remain steady with landlords wary of Dublin’s rents becoming too expensive compared to other comparable European cities.
JLL warns that there remains a critical issue with housing supply across all of Ireland and across all residential sectors. The property experts say the government needs a brave and holistic response to this in order to address the under supply and to ensure that Ireland remains a competitive city to live and work.
Prices are expected to be broadly stable across sales and land sales, although rents are expected to increase. The property experts say affordability will therefore remain a significant issue, which may force some PRS activity to more suburban locations in the next few months.
Commenting on the year ahead, Head of Research JLL, Hannah Dwyer said, "2019 was a busy and active year for the property sector, despite external disruptions. As we head into 2020 with renewed enthusiasm and vigor we are expecting more of the same, with stability across all sectors. The 2 key themes we are expecting in 2020 are for the property market to focus more on sustainability and technology across each of the commercial and residential sectors."
She added, "Investors, tenants and indeed society as a whole are showing greater emphasis on these two themes and it will have a fundamental impact on real estate. Those who show greatest agility to these are the most likely to succeed."
JLL Ireland’s annual property outlook briefing took place in Dublin last week when close to 300 developers, investors, corporates and occupiers gathered at The Conrad.