New figures released yesterday by JLL show that over €955 million of Irish property traded during the second quarter of 2018, over 35 transactions. This is slightly above the level of transaction volumes achieved in the first quarter of 2018 (€933m), but more than a 300% increase on the same period in 2017.
According to the figures, the largest transaction in second quarter was the off-market sale of a portfolio of Dublin office investments for €160 million. The second largest transaction was Westend Retail Park, Blanchardstown, which was sold for €147 million. This retail investment was sold by Green REIT to Deutsche Bank. The third largest sale of the second quarter 2018 was 6 Hanover Quay, a PRS scheme in Dublin 2 was sold for €106m. The investment was sold by Cairn Homes to Carysfort Capital.
Investment this quarter was overwhelmingly Dublin focused, accounting for 95% of total investment volumes. In terms of sectors, while office once again remained the dominant sector (40% of total investment volumes), investment in PRS continues to grow. PRS followed as the second strongest sector in the second quarter, accounting for 38% of total volumes.
Two of the top five deals this quarter were for PRS assets, with strong pricing and multiple bidders being achieved on PRS investments brought to market. This trend is likely to continue with remaining strong demand for the asset class, in particular from overseas investors.
Speaking this week, CEO and Head of Investment at JLL, John Moran said, "Q2 has been another strong year for investment in the Irish property market. Year-to-date volumes have now reached €1.8 billion, more than twice the volumes transacted in the first half of 2017. In particular we have seen significant increase in high-value assets trading this year, with the average deal size for Q2 2018, at €27 million. In Q2 2017, the average transaction size was €7 million. In light of recent investment trends, JLL are now forecasting year-end volumes to be closer to €3 billion."