CBRE Ireland says a total of €623 mln was invested into Irish commercial property in Q1 2023, spread across 26 transactions.
The broker said that despite the challenges facing segments of the commercial real estate market, the total spend for the quarter was only 18% lower than Q1 2022. ‘Volumes exceeded market expectations, with a variety of equity-driven investors concluding a number of big-ticket deals across sectors,’ it said.
Three large transactions with an individual sale price of around €100 mln or greater concluded in Q1, with residential investment volumes accounting for 53% of the total.
Among major deals in Q1 was the recent sale of the Opus apartment scheme at Dublin’s Hanover Quay to Pontegadea, marking the family office of the Zara founder’s entrance to the Irish market. CBRE advised on the transaction.
Other major deals included the Ingka Group’s acquisition of Buildings 1 and 2 at Palm Capital’s Greenogue Logistics Park, with Palm Capital advised by CBRE, and M&G Investment’s acquisition of the Eglinton Place apartment scheme in Donnybrook.
Head of research at CBRE Ireland, Colin Richardson, said: Despite widespread expectations to the contrary, Q1 investment volumes in Ireland have surprised on the upside predominantly due to several large deals.’
‘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. While much global macroeconomic uncertainty remains as the year continues, we have now seen some evidence that pricing across core sectors is beginning to stabilize, with the expectations of buyers and sellers increasingly moving closer together.’
