• PII Property Watch
    Publications PII Property Watch

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  • PII Property Watch
    Publications PII Property Watch

PII Property Watch

Property Watch is a publication from Property Industry Ireland (PII) which draws together over thirty datasets on the Irish commercial and residential property markets from 20 public and commercial sources.  The quarterly report is a comprehensive source of information which will help investors, purchasers and developers involved in the construction industry to make better strategic decisions.

  • September 2016

    PII Property Watch Q2 2016

    Property Industry Ireland, in partnership with DKM Economic Consultants and AIB, launched the Q2 2016 issue of Property Watch on September 6th 2016.

    Housing
    •        Housing completions up 17% YoY
    •        New housing commencements up 33% YoY
    •        2016 forecast is 14,000 completions
    •        Mortgage drawdowns for house purchase increased 24% QoQ
    •        Residential rents up 4% QoQ

    Dublin offices
    •        Dublin prime office rents stable QoQ but up strongly in recent years
    •        Dublin office vacancy rates falling but significant variation with overall vacancy rates reported to be down to between 6.7% and 12% in Q2
    •        The supply shortage in the Dublin industrial market is expected to continue to push rent up in the second half of the year

    Regional offices
    •        Take-up in the Cork office market around 4,000m² in Q2
    •        No take-up in Galway while activity in the Limerick market remains subdued
    •        Prime rents were highest in Cork at €290/m², less than half the corresponding level in Dublin
    •        Prime rents are lower in Galway at €220/m² and lowest in Limerick at €172/m²

    Property investment
    •        Investment turnover in Q2’16 reported to be the largest quarterly turnover on record at around €2.2 billion

    Impact of Brexit
    •        Mixed reports on impact of Brexit:
    •        Should positively affect Ireland’s attractiveness for FDI
    •        Will affect some industrial occupiers in the short term especially if they are exporters to the UK
    •        Less investment may be forthcoming from UK investment companies and financial institutions, which could jeopardise development projects relying on non-domestic sources of finance

    Annette Hughes, Director of DKM Economic Consultants, who prepared the report said: “Activity in the property market continues to ramp up as housing supply edges upwards and expectations about the likely success of the recent policy set out in the Housing Action Plan appear to be higher than they have ever been. But this is not to underestimate the challenges we face in a supply constrained market where residential rents rose by 4 per cent in the second quarter of the year.

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  • June 2016

    PII Property Watch Q1 2016

    Property Industry Ireland, in partnership with DKM Economic Consultants and AIB, launched the Q1 2016 issue of Property Watch on June 22nd 2016.

    The key points outlined in the report are:

    1. Over 2,000 housing commencements in Q1 2016 of which 38% were one-offs.
    2. The total level of housebuilding is forecast at 11,000 units in 2016.
    3. The average office take-up in Q4 2015 was 53,700m2, up 18% on the same quarter in 2015.
    4. There is a substantial quantum of new office supply under construction and awaiting planning, with up to 35 schemes currently under construction in Dublin city centre.
    5. The lack of Grade A office accommodation is the common thread across other urban markets and is putting office rents under pressure, most notably in Cork, where office rents were up by 8% in the quarter.
    6. There has been a sharp decline in the availability of industrial space in Dublin over recent quarters, which explained the quarterly decline of 41% in average take-up to 59,000m2 in Q1 2016.
    7. In the region of €740 million of commercial investment transactions were recorded in Q1 2016, just two-thirds of the corresponding level of investment in Q1 2015.
    8. Dublin ranked 15 out of the top twenty most attractive real estate investment destinations in relation to their economic size in the JLL March Investment Intensity Index.

     

    Annette Hughes, Director of DKM Economic Consultants, who compile the report, noted “the one common thread across the commercial property sectors is the growing scarcity of Grade A space in sought after locations, which is putting rents under pressure. This is probably what would be expected in a market lacking any signs of construction activity for almost seven years until 2015. Moreover in an economy which has expanded by almost 20% in that period and with employment up by close to 160,000 from the lowest point in the last recession, it is inevitable that there would be a space requirement to accommodate that growth. We are seeing substantial development already underway in Dublin as a result, with up to 35 building projects currently underway in Dublin city alone.”

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  • March 2016

    PII Property Watch Q4 2015

    Property Industry Ireland, in partnership with DKM Economic Consultants and AIB, launched the Q4 2015 issue of Property Watch on March 7th 2016.

    Launching the report Annette Hughes, Director of DKM Economic Consultants said: “Using information from property agents and other sources to assemble the comprehensive residential and commercial datasets provided in Property Watch, the status of key indicators on the property market across Dublin and other urban areas can easily be monitored. The data show that there is clear evidence that the property market embarked on a new phase of its cycle in 2015, as the strong economic recovery and the limited supply of new development across the property sector as a whole boosted take-up levels and rents. We are seeing a resumption of development activity, particularly in the Dublin office sector, which should gather momentum during 2016. This is already raising concerns about a potential oversupply situation emerging in the Dublin office market.”

    The key points outlined in the report are:
    •        New report shows housing commencements reached just over 8,000 in 2015, but residential market activity remains depressed
    •        Highest level of take-up in Dublin office market since 2007
    •        Mixed signs of recovery in regional urban markets
    •        Dublin industrial take-up in 2015 reaches its highest level since 2006
    •        Another record year as property investment totals approximately €3.5 billion

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  • November 2015

    PII Property Watch Q3 2015

    The first edition of the PII Property Watch report was published on November 24th 2015. The key points outlined in the report were:

    1.  Housing completions up 11% year-on-year in Q3 with 12,000 expected in 2015 as a whole

    2.  Total office transactions in Dublin reached almost 180,000m2 in the first nine months of 2015 (80% of 2015 total)

    3.  IT and Financial services dominate take-up in the Dublin office market

    4.  Total commercial property investment likely to exceed €3bn by year-end with increased regional investment

    Launching the report which covers Q3 2015, Annette Hughes, Director of DKM Economic Consultants said: "The availability, in one location, of a comprehensive dataset on the property market has been a long standing issue for some time. This first edition of Property Watch draws the latest available data on the residential and commercial property sectors into one report, using data from property agents and other sources, and provides an accompanying commentary on current trends. The intention is to build on the dataset and to expand future editions as new and/or more reliable data becomes available, to ensure that actors in the Irish property market are well-served with access to all the information they need.”

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