The office market was severely disrupted by Covid-19 in 2020. 2021 promises to be a stronger year with the vaccine rollout now underway.
- Ireland’s economy showed remarkable strength in 2020 with GDP growth projected to be between 3.5%-4.0%. The recovery is expected to gain momentum throughout 2021 with the vaccine rollout now underway.
- 1.5 million sq ft of office space transacted in 2020 – 55% below the level that was let in 2019 – as businesses reassessed their relocation and expansion plans due to Covid-19.
- The vacancy rate rose to 9.5%, up from 6.9% a year earlier, while prime headline rents finished the year at €57.50 psf – down from €62.50 psf last year.
- 1.4 million sq ft of office space was completed in 2020. 2.5 million sq ft is projected to be delivered in 2021 of which 62% is pre-committed.
- €1.2 billion worth of office assets were sold in 2020 in what was a healthy performance despite the fact that many investors were unable to inspect opportunities due to Covid-19 travel restrictions.
The Dublin Office Market Overview 2020 also includes an outlook for the market in 2021