Commercial property market shows further signs of improvement

Commercial property market shows further signs of improvement

The Irish commercial property market showed further signs of improvement in the third quarter of 2013, according to a survey by RICS and the Society of Chartered Surveyors Ireland (SCSI).

It said that the research suggests the start of a new phase in the economic recovery and global liquidity conditions in certain markets.

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, Mr. 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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