Construction BUSINESS

Irish commercial property investment reached more than €609 million in Q1 2019 marking a strong start to the year, according to BNP Paribas Real Estate. Continued strong interest from overseas investors is evident with large office and residential developments in most demand.

Retail emerged as the second best performing sector in Q1 with €186 million invested representing 31% of turnover. This total was boosted by Irish Life’s acquisition of a 25% stake in Pavilions Shopping Centre Swords for €71 million.

Kate Ryan, Associate Director & Head of Research, BNP Paribas Real Estate.

With more than €1.8 billion worth of commercial property on the market and continued growth in demand from overseas investors in particular as we move into Q2, BNP Paribas Real Estate expects turnover to again exceed €2 billion in 2019 delivering another strong year for the Irish commercial property investment market.

Total office take-up in Dublin reached 133,306 sq.m across 57 deals in Q1 2019 marking the third strongest quarter on record. The Dublin office market continues to perform well with a number of large lettings in Q1 driving a bumper start to the year.

Office development activity is continuing at pace with almost 250,000 sq.m due for delivery in 2019. While development activity has been concentrated in the city centre in recent years, 40% of the space due for delivery in 2019 is located in city fringe and suburban areas. With more than 85,000 sq.m currently reserved and a number of large requirements active from TMT companies in particular, BNP Paribas Real Estate expects to see continued strong levels of take-up in Q2 and throughout the remainder of the year.