The European commercial property picture remains mixed in spite of the generally better news flows from the region in recent months according to the Royal Institution of Chartered Surveyors (RICS) . Occupier and investment sentiment remains negative in the ‘core’ Dutch and French markets, although improved from earlier on in the year, with Italy continuing to struggle. Nevertheless a “European thaw” is visible as Ireland and Spain are seeing improvement in the commercial property market; with a positive turning point in Spain for the first time in the post crisis era and the German market remains strong.
The latest Irish component of the Occupier Sentiment Index (OSI) was carried out by the Royal Institution of Chartered Surveyors (RICS) - - the Society of Chartered Surveyors Ireland (SCSI) collated responses in this country - - and is intended as a summary measure of sentiment in the occupier market.
The Index previously returned a negative reading for Ireland in the second quarter, but the third quarter results have been more positive with Ireland coming third to UAE and Japan in terms of positive occupier sentiment.
Eamonn Maguire, chair of the Commercial Agency Professional Group of the Society of Chartered Surveyors Ireland said that Ireland's position was reflective of a general increase in activity and demand for high quality office space from international investors.
"We have an emerging shortage of high quality office space in Dublin, Cork and to a lesser extent Limerick and Galway and this, together with further inward investment wins by the IDA are translating into more positive sentiment in the market."
Meanwhile the RICS Investment Sentiment Index (ISI) - which is intended as a summary measure of sentiment in the investment market - - also returned a positive reading for Ireland this quarter compared to last, which was negative, albeit Ireland was in 13th place after countries such as Japan, the US, Russia, UK, Canada and Germany.
Commenting on the investment market, Maguire said that the government's decision to extend to the end of 2014, the period for property investors to qualify under the Capital Gains Tax relief scheme, is a major incentive to the market. Increased transparency in leasing transactions with the launch of the PSRA Commercial Lease Database, will also support investor confidence in this area".
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