Irish property returns hit 6.3% in the second quarter of 2014, according to the latest data from MSCI.
The figures, contained within the IPD/SCSI Ireland Quarterly Property Index, showed Irish total returns continued to gain in strength following the first quarter’s rise gains of 4.3%.
Irish offices were the best performing with returns of 7.4% in the quarter. In the 12 months to the end of June the total returns from offices were 37.7%, a record for the country.
Rental values recovered from the dip of the first quarter when rental income fell and became the driver for those strong returns, with a 6.1% increase in values in the second quarter.
Commercial property saw total returns of 33.7% over the 12 months to the end of the June which was more than double that of 16.7% for the UK.
Colm Lauder, senior associate with MSCI, said: “We have also seen an improvement in the industrial sector, with total returns rising 250 basis points over the course of the second quarter of 2015.
“The prime retail sector recorded a significant pick-up in rental performance during the second quarter, with market rents climbing by 4.4% on Grafton Street as confidence returns to the retail trade. Values on Ireland’s leading high street have grown by 49% in the last 24 months, although this still leaves values 62% off the 2007 peak.”
