Activity in the Dublin office market continued to gather pace in Q2 with a total of 46,370 m² of lettings transactions completed in the quarter, making it the strongest Q2 since 2018.
According to CBRE, overall H1 office take-up now stands at 91,831 m². CBRE said: ‘This is a solid opening half to the year with market sentiment among Dublin occupiers remaining broadly positive, despite global macroeconomic headwinds.’
More than 118,500 m² of Dublin office accommodation is reserved at the end of Q2 and competition for prime, modern, ESG friendly space is driving prime rental growth. Prime office rents in Dublin increased to €673 per m2 (€62.50 per ft2) during Q2, with further growth anticipated in H2.
According to author of the report, Colin Richardson, ‘We are starting to see a return to pre-pandemic trends in the Dublin office leasing market and competition for prime, modern, ESG friendly space is driving rental growth, with a number of deals completing this quarter at rent levels that have solidified this view.’
‘The analysis in our report touches on the supply/demand dynamic in the Dublin city market and illustrates that it remains broadly balanced at this juncture with much of the new stock to be delivered to the market this year already pre-let.’
The research paper came on the same day as positive news from the IDA, Ireland's investment agency.
It said: 'In spite of a pandemic, lockdowns, recession worries and war, the positive trend of FDI into Ireland continues unabated. Today's H1 results from the IDA highlight these trends.'
