Residential property deals bolster a weak quarter for Irish office sales
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Loading... - Sarah Williams
- 07 Apr 2023
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Big-ticket residential sales dominated the commercial property market in the first quarter as overall volumes fell steeply compared to last year, according to new data compiled by CBRE Ireland.
A handful of large apartment block deals meant that more than half the business done in the first three months of the year was in the residential sector.
But the spurt of major residential purchases and a couple of large sales in logistics and suburban offices masked a general softness in the sector, with the lowest spend since the pandemic-hit second quarter of 2020.
Total investment in commercial property across 26 transactions in the first three months of the year was €623m, down 18pc on the same period in 2022 – “a reasonable outturn given the prevailing sentiment”, according to CBRE.
Of that amount, €332.5m was spent on residential sales, the vast bulk of which went on just three major deals, including a significant off-market purchase by an approved housing body.
“Despite widespread expectations to the contrary, Q1 investment volumes in Ireland have surprised on the upside predominantly due to several large deals,” said Colin Richardson, head of research at CBRE Ireland.
“The residential sector continues to be defined by acute supply and demand imbalances, and as such investor interest has propelled the sector to account for half of all volumes in Q1.” Read More…
