Investor spend on commercial property assets is set to exceed €5.5 billion for 2022 as a whole.
Two large transactions, which have closed, account for €1.6 billion of that.
Another large office transaction, in the region of €500m, which if closes by year end, would make 2022 a year of very significant transactions in the market, reflecting underlying international investor confidence in Ireland.
Office and PRS assets remain firmly in demand. However, as debt markets adjust to a new period of higher interest rates, re-pricing is underway.
Prime yields are expected to move out across all sectors. Deeper re-pricing is expected for secondary assets which do not meet ESG credentials or require high capital expenditure.
That said the market, remains supported by economic growth and a strong labour market, which will keep Ireland firmly on international investors’ radars in 2023.
Joan Henry, Chief Economist & Head of Research