commercial property lambert smith hampton

Research - 29/03/2017

Property investment in Ireland exceeds expectations with 2016 turnover reaching €4.5bn

Property investment activity remained strong in Ireland during 2016, recording a total turnover of €4.5bn, according to the Ireland Investment Market Bulletin published by Lambert Smith Hampton today. The figure marks a 21 per cent increase on 2015 and represents the second highest level of investment in the last decade – just short of the €4.8bn high in 2014.

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Private equity investors were the most active accounting for two-fifths of investment volume. Institutional investors were also very active and responsible for around €1.1bn of investment.

Retail and office deals dominated the market, with two large retail deals accounting for €1.6bn of transactions. This year was boosted by Blackstone acquiring Blanchardstown Shopping Centre from Green Property for approximately €975m which is reportedly the largest property deal in the history of the state. 

Office transactions accounted for one third of the total investment volume. The €240m sale of One Spencer Dock in Dublin to an international fund and €140m sale of The Oval in Dublin to Patrizia were notable deals in this sector.

Paddy Brennan, head of capital markets in Lambert Smith Hampton said: “While investment activity continues to be concentrated in Dublin, LSH has found that investor appetite is starting to spread throughout the regions. 

“We expect real estate investment activity in Ireland to remain healthy despite the global climate of uncertainty. The outlook for 2017 is one of positivity with the Irish economy expected to grow and strengthen,” said Mr Brennan. 

He added: “We anticipate that investment activity will remain buoyant with investors continuing to explore opportunities across Ireland. The country looks likely to remain amongst the strongest and fastest growing economies in the EU.”

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