Residential development land prices up 14% last year, according to SCSI

Residential development land prices up 14% last year, according to SCSI

The price of residential development land in Dublin rose by 14% last year, according to the latest figures from the Society of Chartered Surveyors Ireland.

The figures were compiled following a survey of 380 surveyors and estate agents and research commissioned by SCSI.

The surveyors’ body expects similar price rises for residential development land this year. It estimates 10% to 11% growth outside of Dublin and growth of up to 15% in the city.

The SCSI predict a sustained but more moderate growth rate in office rental prices in 2017 with an anticipated rental increase of 7% in Prime Grade A in the Dublin Region and 6% growth for most other office types.

The anticipated level of growth outside of Dublin is more moderate.

The SCSI noted that the computer and high tech sectors led the office take-up last year with about a third of all take ups.

It was followed by business services which accounted for 17% and financial services tenants which accounted for around 14%.

Claire Solon, President of the SCSI, said that while it is still premature to accurately predict the impact of Brexit and Donald Trump’s election on the commercial property sector, the results of the survey show that a degree of uncertainty is already apparent.

“The ability of the investment market to weather many potential storms was a highlight of 2016 and it’s clear Ireland is viewed as a safe harbour for international funds in the wake of numerous uncertainties,” Ms Solan said.

“In addition to international events, domestic issues such as solving the housing crisis or changes in the taxation structure for Section 110’s will all impact on investment returns and capital growth expectations going forward.  The market likes certainty,” she added.

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