Dublin office markets returned 28% in 2015, according to the latest research from BNP Paribas Real Estate and MSCI.
The BNPPRE/MSCI Dublin Office Investment Market report found that the Dublin 4 area led the way as rents surged, helping push the area’s total returns over 2015 to 37% .
Dublin 2 and the South Docks also befitted from increased rental yields of 17% and 18% respectively, boosting their total returns to 28% and 27%.
The South Docks were also boosted by firmer-than-average equivalent yields of 5.1%, versus the average of 5.7% across Dublin.
Colm Lauder, vice president at MSCI, said: “Dublin was the top-performing global city for real estate investment return in 2014, and early data for 2015 suggests the Irish capital will again dominate the rankings with an impressive total return of 28%.
“The drivers of the robust Dublin performance have shifted towards the occupier market, as a buoyant economy encourages businesses to be more confident about the future. In particular, the significant expansion in the services sector has pushed demand for office space to levels not seen since 2007.
“Investor demand, as measured by yield impact, remains strong, but contributed less to total returns in 2015 as yield pricing stabilised closer to long-term norms.”
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