The Irish property investment market exceeded expectation in 2018, with over €3.6 billion invested in Irish commercial property during the year, according to reporting this week by BNP Paribas Real Estate Ireland (BNPPRE).
Last year became the fourth strongest year on record in terms of investment spend in Ireland, according to Kenneth Rouse, Managing Director and Head of Investment at BNP Paribas Real Estate Ireland.
Offices were the top performing sector again in 2018, with €1.5 billion invested across 79 deals accounting for 42% of total turnover. Five out of the top 10 transactions in 2018 were offices, namely the sale of Heuston South Quarter, No.1 & No2 Dublin Landings, which was the largest single transaction of the year. Eleven so-called mega deals, worth over €100 million, transacted in 2018 the BNPPRE report shows, compared with just 4 in 2017.
Residential investments represented 31% of total turnover in 2018, up from 15% in 2017, and just 6% in 2016. This is underpinned by strong growth in both development of, and investment in, PRS assets in response to the housing crisis and changing residential occupier trends.
The largest residential transaction of the year, and fifth largest transaction overall, was the sale of 372 apartments currently under construction in Clongriffin, Dublin 13. The development was sold to Tristan Capital Partners for €140 million.
The highest rents achieved in Dublin were €753 per sq.m in the city centre for One Molesworth Street, Dublin 2, and in the suburbs the honours went to Three Dublin Airport Central, a deal brokered by BNP PRE, which achieved €355 per sq.m.