The Irish commercial property market has seen a substantial boom this summer, with deals worth millions being exchanged. The retail arm has not been excluded; in fact, it has performed at the same level as the commercial market.
According to the Independent, almost €180 million was transacted in Ireland during July and August alone, making this one of the biggest years ever for the commercial property market.
Is history repeating itself?
The last two years were fantastic, and it was thought that 2016 would ease up a little on previous years. However, this does not seem to be the case. Notable increases have been seen in the capital of Ireland, where offices and hotels have made a significant investment with building construction at its peak.
Moreover, retail and industrial planning are on the increase, which means that shopfitting in Dublin and other big towns in Ireland will also benefit. Demand is on the rise as rental values fall, and this can only mean that it will have a knock-on effect for all commercial organisations that are involved with the planning, design and building of commercial units. A company like Designco that specialises in designing and fitting out commercial interiors is likely to be in strong supply as the trend upward continues in Ireland.
A shortage of commercial property
The reason for such growth in the commercial property market is down to a shortage of modern commercial buildings and a belief from property investors that the market will remain strong and yield a good return on their investment.
Moreover, demand for high quality public house buildings is way above what is available, which bucks the trend from last year. Pubs are being refurbished and trade accounts are being managed differently to keep a hold on debt.
There are many retailers that require units in Dublin itself, but again, there is a shortage of supply, particularly in the prime retail areas. Demand is coming from the food sector, with many well-known brands coming into the city.
What about the remainder of 2016? Will Ireland continue to see growth and investment in commercial property? Experts are predicting that rental yields will rise as much as 25 per cent, which will ultimately ensure that new developments will be built and commercial Ireland will continue to flourish.
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