Investment into Irish real estate in the first three quarters of the year has hit €2.9bn (£2.3bn), comfortably overtaking 2013’s full-year figure of €1.9bn, according to Knight Frank.
The figure puts the sector well on course to surpass the €3.4bn invested in 2006, the strongest year on record.
US investors chasing value-add and opportunistic strategies were the main drivers of growth in 2013, but were increasingly joined this year by domestic and European investors including Irish REITs and German funds, a Knight Frank report released this morning said.
Matthew Colbourne, international research associate, Knight Frank London, said: “Investment activity has gained remarkable momentum during 2014, and shows no immediate signs of slowing. With investors seeking to complete deals before the year end, transaction volumes for 2014 are likely to reach record levels.
“The strength of institutional demand for Irish commercial property continues to exert pressure on pricing. Dublin prime office yields currently stand at 5%, having started the year at 5.75%, and may harden further over the coming quarters.”
