Rapid recovery in the Irish real estate market was crowned by €4.5 bn of investment transactions in 2014, a 156% increase on the €1.8 bn of deals the year before.

Rapid recovery in the Irish real estate market was crowned by €4.5 bn of investment transactions in 2014, a 156% increase on the €1.8 bn of deals the year before.

CBRE said 243 investment transactions of more than €1 mln were concluded in the Irish market during 2014, totalling over €4.58 bn, compared to 96 transactions totalling €1.78 bn in 2013. In addition, more than €21 bn of loan sales including Irish assets traded in the 12-month period.

The strong Irish figures are outlined in the property consultant's Outlook 2015 report. CBRE describes 2014 as a pivotal year for the Irish commercial property sector and said an equally busy year is in prospect in 2015.

Enda Luddy, managing director at CBRE Ireland, commented: 'Commercial transaction volumes and property value improvements exceeded all expectations last year. Irish property was one of the best performing asset classes in the world during the last 12 months and transaction volumes were up significantly in all sectors. However, it is important to remember that recent value increases are coming off a low base following an exceptionally severe crash and values still remain considerably below peak levels in all sectors, which will continue to attract investors to Irish real estate over the next 12 months.'

Marie Hunt, head of research at CBRE Ireland, added: 'Last year saw record levels of fundraising for commercial real estate investment across Europe and we expect to see considerable volumes of cash and equity continuing to be deployed over the course of the next 12 months, with much of this focussed on opportunities in Ireland, despite the extent to which yields contracted during 2014.

'With Eurozone interest rates expected to remain low for the foreseeable future, the relative yield arbitrage offered by real estate investment will remain, even if prime yields contract further over the course of the year as anticipated. Ireland’s superior economic prospects compared to the rest of Europe coupled with rental growth expectations augur well for investor appetite and Irish real estate performance in 2015.'