Cushman & Wakefield have today released their Irish Development Land Market Review and outlook for 2017.
 
The data shows that 2016 was another strong year for land sales with transactions topping €687m, but when combined with portfolio/loan book sales this rises to €792m. At this level it would represent the strongest year of transactions since 2006. 

For the second year running, Cairn Homes were the largest player in the market, making up c.34% of transactions in 2016, after dominating 2015 with its €378m Project Clear (total value of €503m with Lone Star) acquisition giving the housebuilder a traded market share of c.40%. We estimate that Cairn Homes have accounted for c.38% of total transacted development land (incl. loans) in the last two years.
 
The report shows residential development land remains constrained in the greater Dublin area, with pricing upside for those with ready to go sites and the benefits of being an early mover in a buoyant market.
 
While the market is seeing supply constraints, Cairn do not have this issue with a land bank that could allow for a potential c.12,100 units. The largest single development land deal in 2016 was the 164.4 acre Argentum portfolio which Cairn Homes acquired in April for €105.6m. This deal saw Cairn acquire six prime Dublin suburban and commuter sites which allowed them to further scale up operations with a number under construction already.
 
Commenting on the report, Goodbody Stockbrokers said, "Growing house prices (Dublin +5.7% in 2016 - CSO) also supports higher development land residual values. C&W’s data today further backs up a strong growth case for Cairn both from a land valuation perspective and housing delivery scale-up given its strong land bank holdings."

Source: www.businessworld.ie