Irish Property Market analysis Q2 2023
A sharp fall in the volume and value of Irish property investments was seen in the first half of this year and the trend continued into the second quarter.
According to estate agent JLL, 25 deals saw €333m worth of property change hands in Q2 bringing the value of first-half deals to €954m – a 47.8pc drop on the 10-year average for H1 investments. Meanwhile, the number of deals fell 33.4pc to 51 deals.
Retail recorded €146m invested in Q2 2023, accounting for the largest market share with 43.9pc.
Niall Gargan, head of research at JLL Ireland, said the sector is emerging as an attractive asset class due to its strong occupation and rental profile, along with enticing yields for investors.
“Retail parks in particular have garnered the attention of investors, with €125m invested over the last 18 months” and an off-market €46m retail park deal was the second-largest investment in Q2.
The sector also saw the B&Q Liffey Valley retail warehouse in Dublin 22 purchased by Inter Gestion REIM for around €27m.
The biggest investment deal in Q2 was a residential investment for €55m. The third largest was an office investment at 87-88 Harcourt Street, Dublin 2 for €34m.
JLL’s May sentiment survey revealed that 39pc of investors believed that market conditions would improve over the next six months.
Mr Gargan attributed the reduced activity to interest rate hikes impacting the cost of borrowing.