| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy


Finfacts changes from 2015

RSS FEED


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.

Welcome

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

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Global Cost of Living

Irish Tax - Income/Corporate

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: Mar 5, 2015 - 1:58 PM


Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
By Michael Hennigan, Finfacts founder and editor
Mar 5, 2015 - 7:20 AM

Email this article
 Printer friendly page

Prime office rents in Dublin are forecast to rise in the 12% to 31% range in 2015 after a 29% surge in 2014 according to Society of Chartered Surveyors Ireland.

The organisation's Annual Commercial Property Review & Outlook 2015 published today says that SCSI members reported that the Dublin Region office rent for prime ‘grade A’ offices in 2014 was €452 per sqm (squarer metre) in 2014, representing an increase of up to 29% on 2013 prices. Average prime ‘3rd Generation’ offices fetched €389 per sqm, conveying a 13.7% increase.

Dublin-based SCSI members expect a 12% increase in rents by year end on prime “grade A” office space, but with an acute shortage of space in this market segment, that figure could well be exceeded and today's report says industry experts anticipate prime “grade A” office rents to hit €592 per sqm by year end if the positive economic growth trends continue.

"A further increase in 2016 to €645 per sqm is not unrealistic if the economy continues to grow."

In early 2006, the craziest year of the Irish property bubble, Finfacts reported that CBRE said in respect of the Dublin 2/4 area and Dublin Docklands, it expected to see prime rents in these areas "escalating to between €592 and €645 per sqm before year-end."

In 2006 Dublin office rents rose by 43% as Irish public sector demand jumped; Dublin and Mumbai were the highest risers in the world. The prime rate in Dublin was at €823 per sqm

Irish commercial property returns in 2014 among highest in world

Irish commercial property investment in 2014 was 25% above bubble peak in 2006

Eamonn Maguire, chair of the SCSI Commercial Agency Professional Group said “The increase in rents has been largely due to a lack of supply combined with higher levels of demand from domestic and international companies seeking new office space or to expand existing operations as we have seen several of the large Technology, Media and Telecommunications companies do in 2014.”

“Ensuring the availability of development finance for measured speculative development is key and will address the supply issue while also supporting job creation. But we have some concerns that companies won’t want to wait around for 18-36 month completion timeframes and that is why it is imperative the Government addresses this issue immediately” he said.

Four hundred and twenty Chartered Surveyors were surveyed for the SCSI report, published in conjunction with Future Analytics Consulting.

In the retail sector, capital values in Dublin’s Grafton Street alone grew by approximately 28% in 2014. Rents increased by 11.5% for prime rental in Dublin following declines in recent years as rental prices reached €4,491 per sqm. Respondents to the survey expect prime retail rents in Dublin to increase by 10% in 2015. In Connacht/Ulster, they are expected to increase by around 9% and in Munster and Leinster by approximately 5.5%.

Development land values increased in 2014, most notably by 32% in Dublin, 24% in Munster and Leinster and 4% in Connacht/Ulster for residential development land. SCSI members anticipate residential development land values in Dublin will increase by around 17.5% in 2015.

The industrial sector also experienced positive growth, much of which was focussed on the Dublin market. Prime industrial rents under 500 sqm increased to €82 per sqm, representing an increase of approximately 34% year on year.

Investment in the commercial property market accelerated to around €4.5bn in 2014, up from €2.6bn in 2013 and despite a slightly slower start to 2015, increased investment looks set to continue in 2015.

Related Articles


© Copyright 2015 by Finfacts.ie

Top of Page

Property
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