| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Property Last Updated: Feb 19, 2014 - 6:29 AM

Irish commercial property returns rose to 12.7% in 2013
By Finfacts Team
Feb 19, 2014 - 6:27 AM

Email this article
 Printer friendly page

Irish commercial property returns rose to 12.7% in 2013 as the Irish property downturn reached its nadir and property values increased amid improving economic sentiment. According to the IPD/SCSI Ireland Quarterly Property Index, property values rose by 3.2% for the year - - the first annual capital growth since 2007 - - while income returns averaged 9.2%. Real estate values began to grow in selected prime office markets at the start of 2013, but headline level capital growth did not emerge until Q3, halting the 23-quarter decline that has seen values fall by over 65%.

While the turnaround was mainly driven by Dublin’s office markets, improvements in the Irish economy in the second half of 2013 led to this growth spreading to both the retail and industrial sectors by the fourth quarter - for the first time since the onset of the downturn.

Capital values for retail assets rose by 2.1% in Q4, leading to a total return of 3.8%; while for industrial units they grew by 0.6%, leading to a total return of 3.5%. Offices continued to deliver the strongest returns, of 7.2%, as values increased by 5.0%.

Overall, quarterly commercial property returns reached 5.7%, off the back of capital growth of 3.6%. Comparatively, bonds and equities delivered 3.9% and 9.4% in Q4, and 13.1% and 35.6% for the year (JP-Morgan 7-10 yr/MSCI Ireland).

IPD said the heavy discounting of Irish real estate has pushed annual income returns to over 9.0%, which has attracted a host of investors from home and abroad, and led to the successful launch of Ireland’s first two REITs, all keen to take advantage of pricing in the market.

However, it is has been the economic and austerity-led improvements that have finally increased investor confidence, with property growth being backed up by a host of positive economic indicators. The second half of 2013 saw Ireland exit its EU/IMF €85bn Euro bailout – the first European country to do so – GDP growth of 1.5% in Q3, and unemployment fall to 12.5% (Central Statistics Office).

Rental values, a measure of tenant demand, finally increased at the headline level in the fourth quarter of 2013 as a result of these economic improvements, by 3.7%, which has increased the confidence of investor’s in their ability to let assets.

Backing up the positive pricing sentiment, the fourth quarter of 2013 saw a flurry of net investment into the Irish market - - with levels of net investment reaching €243m, their highest since 2006, and the third highest year of net investment in the 30 year history of the index.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement