Commercial property consultants CBRE today released their May bi-monthly report, focussing on current trends in all sectors of the Irish commercial property market. The property consultants say that there is a lack of prime properties for sale to cater for the current volume of demand in many sectors.
The CBRE report also contrasts conflicting market conditions in the Republic and Northern Ireland, with transaction volumes extremely low in the North during the first few months of 2013 in contrast to two consecutive quarters of strong transaction volumes in the Republic and improving prices in the Dublin market over recent months.
According to Enda Luddy, Managing Director at CBRE, Ireland “The last few months has seen continued activity in all sectors of the Irish commercial property market although demand is strongest for prime properties in Dublin, with a clear divergence in performance and transaction volumes between prime and secondary assets. A theme that is coming through from many sectors of the market, particularly investment, hotels and development land, is the lack of prime property being released for sale to satisfy the current volume of demand. This trend is also evident in the Northern Ireland market. Although the Northern Ireland property market remains depressed relative to the Republic, there is international demand for prime investment properties in the North but there are very few assets actually being offered for sale, which is frustrating would-be purchasers”.
Marie Hunt, Executive Director and Head of Research at CBRE Ireland added “The Capital Gains Tax (CGT) waiver introduced by the Irish Government in Budget 2011 is not hugely relevant to international investors who are for the most part already investing through tax efficient structures but it has significant resonance for domestic investors and land purchasers. However, considering the length of time it is taking to conclude transactions in the current climate, it will be necessary to get assets onto the market sooner rather than later to ensure that the potential purchasers have transactions completed by year-end when this CGT waiver is due to expire”.