Irish investors are expected to invest over £3.5bn in commercial property in 2005 across a number of countries according to CBRE Gunne’s third quarter Investment Market View.
The local Irish market is expected to account for a record €1bn (£0.6bn) of this year, with a number of high profile transactions completed in recent months.
“Positive economic fundamentals and a favourable interest rate environment are the main factors supporting the commercial investment market,” explains director Sean O’Brien.
The UK commercial property is expected to attract in excess of €3bn (£2.1bn) but he says that the Irish investors are experiencing greater difficulty sourcing good quality investment product in the UK at the moment.
In addition, Irish investors continue to spread their wings in European commercial markets.
According to Caroline McCarthy, Director of Overseas Investment at property consultants CBRE Gunne:
“In the first six months of 2005, our research indicates that Irish investors completed 29 investment transactions across Europe, equating to a total spend of almost €500m (£339m).
“80% of these transactions comprised office properties, with the remainder comprising retail investments.
“In recent years, Irish investors have predominantly focussed their attentions on Belgium, France and the Netherlands.
“While these countries are still a major focus, comprising three quarters of all of the deals completed by Irish investors in the first half of 2005 between them, other countries are now emerging, with deals completed by Irish in Poland, Romania, Germany, Hungary and the Czech Republic in the first half of the year”.
The firm also forecasts that total un-geared returns in the order of 15% will be achieved in the Irish commercial property market in 2005.
References: EGi News 28/09/05
