According to the real estate firm CB Richard Ellis, this year Ireland's commercial property market is predicted to emerge from the crash it has experienced the last several years and see growth at steady levels.
Improvement is expected in the number of transactions in commercial and other sectors of the Irish market as well according to the Dublin office of the international commercial property specialists. Much of the recovery will be given credit to the banks, borrowers, as well as the National Asset Management Agency bringing more property to the real estate market.
The number of investment transactions in Ireland has increased from 2009 to 2010. In 2009, 13 investment sales with a total of €92 million were recorded. In 2010, 29 investment sales were recorded totaling €241.7 million. Experts remain optimistic that continued growth will occur throughout 2011, especially from interest from overseas investors.
The commercial property does not anticipate rental growth this year and may even see rents decrease. In 2010, 187 office lettings were completed in Dublin. Software companies, pharmaceutical groups, and the online gaming industry took up a good amount of the 130,000sq m. With such interest in lettings, the high level of vacancies in the office sector should decrease.
According to the CBRE, the retail sector continues to see demand for prime locations and the market will most likely see an increase in shorter leases and a higher number of break clauses as the number of pop-up shops increase.
This is good news for business owners as many have struggled and even closed down shop since the global financial crisis began.