The CBRE Outlook 2020 report provides a succinct summary of trends experienced in 2019 and key insights and predictions for each sector of the Irish commercial property market over the course of the next 12 months.
In overall terms, the prospects for the Irish commercial property market remain encouraging for the year ahead.
Key takeaways include:
- 2019 proved to be another strong year for the Irish commercial property market, both from an occupier & investor viewpoint with record investment volumes of over €7.2 billion recorded during the year and real estates’ attractiveness to investors increasing as a result of easing monetary policy
- The changing nature of cities, workplaces and technology will continue to influence how people ‘work, live and play’ and shape the direction of the market in 2020
- Greater blurring of lines between individual market sectors, with mixed uses within buildings and schemes becoming increasingly commonplace and greater focus on place making & the public realm
- While the issues of affordability and viability that dominated the agenda in 2019 have clearly not gone away, key themes in 2020 will be resilience, re-purposing and sustainability
- Real estate will remain highly desired by investors in 2020, but investment returns are likely to continue to stabilise in line with an easing in global growth expectations
- There is likely to be a shift in the nationality of Asian investors focusing attention on Ireland in 2020 with an increase in investors from Singapore and Hong Kong and a decline in appetite from Korean investors anticipated
- The State and semi-state organisations expected to become more focused on the disposal of non-core property commitments with more seeking to consolidate their portfolios
- Many investors encouraged by the attractive return profile from the multifamily sector that is generally less susceptible to cyclical movements over the medium to long term. However, imposing a rent freeze would only hamper supply and further compound affordability issues for both purchasers and renters
- The structure of land sales in 2020 is expected to be considerably different to last year, with more forward-fund and forward-commit structures anticipated
- Approximately 5,000 new hotel bedrooms under construction in the capital of which approximately 2,200 are due to open for business during 2020
To download CBRE’s detailed report please click the following link; Ireland Real Estate Market Outlook 2020