Dublin’s retail and industrial markets are the most attractive in Europe under current pricing, according to research by DTZ.
DTZ’s Fair Value Index, which assesses which cities are overpriced or underpriced, found that Dublin retail and industrial properties offered investors the most value for the second quarter of this year.
The city’s office sector also featured in the top 10 European investment locations.
Paris, Zurich and Istanbul offices were the least attractive sectors to invest in for value, along with London retail.
Peripheral markets, the agent said, were likely to outperform their traditional Western European counterparts. Cities in central and eastern Europe and the Baltics, such as Bucharest, Vilnius and Warsaw, would also continue to look attractive until at least 2017, DTZ said, with strong manufacturing growth and consumer forecasts contributing to their recovery.
Magali Marton, DTZ head of EMEA Research, said investors were also increasingly targeting other peripheral markets in Spain, Italy and central and eastern Europe, due to attractive pricing and improving economic outlooks.
Marton said: “In the long term, we expect rises in bond yields to make property less attractive on a relative pricing basis.”
DTZ said European property became “slightly more attractive to investors” overall in Q2, with European attractiveness to weaken in the second half of the year.