Dublin could see its office completions shrink in 2019 compared with this year, as technology firms continue to dominate the market.
In total, the tech sector accounted for just over 215,000 sq ft, or 44%, of transacted space in Q3, according to a report from Savills Ireland.
However, while Savills believes 2018 will be a record-breaking year for office take-up, 2019 is expected to be a tighter year for new supply. According to the report, new office completions of 2.3m sq ft will be delivered this year, around 5% more space than is likely to be completed in 2019.
While supply will tighten next year, Dr John McCartney, director of research at Savills, does not anticipate any let-up in the demand for Dublin office space. “Ireland is carrying very strong economic momentum and, notwithstanding the known unknowns, the outlook remains positive,” he said.
“On average, forecasting institutions predict that the economy should expand by 6.9% and 4.2% in 2018 and 2019 respectively. This is very strong growth by historical and international standards, which should lead to further jobs growth and absorption of business space.”
Andrew Cunningham, director of Savills’ offices division, commented: “Looking ahead, on-site construction activity indicates that completions will be lower in 2019 than 2018, although it will pick up again in 2020.
“In addition, 51.27% of all the stock that is currently under development is reserved or let – the highest level in the cycle so far, demonstrating strong demand.”
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