An index that measures activity levels in the Irish commercial property sector performed at its best level since 2006 in the latest quarter.
The JLL Irish Property Index rose in the second three months of this year, marking the eleventh straight quarterly rise.
Hannah Dwyer, Head of Research said that: “Stability continues in the market with positive Overall Returns for the eleventh consecutive quarter. Year-on-year, Overall Returns increased by 30.1pc. The last time annual returns were greater than 30pc was in Q3 2006.”
Overall Capital Values increased by 5.0pc in the quarter and 19.4pc in the year. Offices (7.1pc) continued to perform the most strongly, followed by Retail (3.1pc) and Industrial (1.4pc). It is the fourth consecutive quarter that there have been Capital Value increases across all sectors. Office Capital Values have increased by 24.6pc in the last 12 months. Overall Income increased by 0.3pc in the quarter and 2.4pc in the year. This is the second consecutive quarter that income has increased year-on-year.
Rental Values increased overall by 9.0pc in the last 3 months compared to 1.2pc last quarter. They have increased by 16.9pc in the last 12 months. Offices had the greatest increase in Rental Values of 16.9pc, with a 36.3pc increase in the last 12 months. Retail Rental Values were positive this quarter (+1.2pc), although on an annual basis, they decreased (-1.1pc).
“Although we are seeing significant increases in annual values, it is worth noting that have come from a bottomed-out market. Despite the 19.4pc increase in values in the last 12 months, they remain 60.6pc lower than the peak,” added Ms Dwyer.