JLL's Irish property index reports 2.9% growth in Q3

Property consultancy Jones Lang LaSalle reported steady growth for overall returns from Irish commercial property in the third quarter, with a 2.9% rise in the three-month period and a 14% rise in the year to end-September.

According to JLL's Irish property index for the third quarter, total returns were up by 8.7% in the year to date with capital values marginally ahead of the growth rate for rental values. The industrial sector booked the highest quarterly increase of capital value at 2.3%, while achieving growth of 11.3% in the year to September. Current income yields on property now average 3.5%, with 5.1% for industrial, 3.7% for offices and 2.9% for retail.

'Third-quarter growth was exactly the same as that seen in the second quarter of this year and is best characterised as steady and moderate,' said Clare Eriksson, head of research at Jones Lang LaSalle in Dublin.