Commercial real estate turnover in Ireland could exceed €3 bn in 2014, according to the latest research report on the market published by Savills.
Commercial real estate turnover in Ireland could exceed €3 bn in 2014, according to the latest research report on the market published by Savills.
Ireland already saw the highest investment volume since 2006 in 2013 with 140 sales transactions worth almost €2 bn.
Domhnaill O’Sullivan, investment director at Savills Ireland, said: '2013 exceeded all expectations in relation to commercial property investment volumes. At this point in 2014 there are approximately €750 mln of transactions agreed or with the lawyers, and an estimated pipeline of around €600 mln coming to the market in the short term. In addition a significant volume of stock is still waiting to be traded and if any of the banks currently holding large volumes of stock decide to de-leverage via large portfolio sales, we could see turnover reach record levels again by the end of the year.'
American investors remain very active in the market according to the report, acquiring five of the top 10 assets sold in 2013. Nonetheless, the firm suggests that one of the defining features of the investment market in 2013 was the return of the Irish institutions.
O’Sullivan: 'Demand from Irish institutions was bolstered by the introduction of Ireland's first REIT, which invested €202 mln during the course of 2013. With others likely to follow, we expect that REITs will form a significant part of overall market demand going forward. This, in tandem with increased demand from established institutions such as Irish Property Unit Trust (IPUT) and Irish Life, will further underpin an already strong investment market.'
The full report is attached below
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