If estimates are correct, there could be another good year ahead for the Irish commercial property market. This is according to the CBRE.
Outside of the ongoing appetite of investors for traditional office, residential, retail and industrial sectors, the growth in demand for alternative investments such as data centres, senior housing and life sciences, is anticipated to see the momentum built up in 2021 carry through to this year.
Myles Clarke, CBRE Ireland Managing Director, summed this up at the virtual launch of the 33rd edition of the commercial real estate agency’s annual Outlook report.
“The landscape for commercial real estate is dramatically different from the last decade, yet long-term financial trends and the growth trajectory of the Irish economy remains intact. This presents immense opportunity. Indeed, the central theme of this year’s report is Identifying Opportunity”.
CBRE executive director Marie Hunt shared that the current year will be marked by an increased focus on sustainability, with ESG (Environmental, Social and Governance) considerations now the lens through which occupation, development, investment and funding decisions are made. A “greenium”, or green premium, will be paid for those assets with the best green credentials, she said.
With regards to the prospects for the development land market, strong competition for well-located sites is expected, particularly those that have existing planning permission and access to supporting infrastructure.
The industrial and logistics sector is on course for another strong performance, and CBRE anticipates some €500 million in hotel trades to be transacted in 2022. The healthcare sector is also in line for a considerable increase in development activity.
LSL News.