Our sectoral picks include Offices which experienced a record year in Dublin in 2017, and Investment where we expect to see continued appetite for prime investment opportunities in the Irish market in 2018.
CBRE Ireland Outlook 2018 Event Video
Live RDS event video, Tues 16th Jan of the launch of CBRE's Ireland Real Estate Market Outlook 2018 report with: Enda Luddy, Managing Director @ 0:00" - 8:26"; Marie Hunt, Executive Director, Head of Research @ 8:28" - 53:58" and John McGrane, Director General of the British Irish Chamber @ 54:00" - 1:20:40".
Review of 2017 - Enda Luddy
Market Outlook 2018 - Marie Hunt
Funding Outlook 2018 - Patrick Phelan
Key Takeaways by Sector
Considerable expansion activity is expected to support another strong year of take-up in the Dublin office market in 2018 following a record performance last year, which was boosted by a number of Brexit-related moves. There is potential for further rental growth in many parts of the market including secondary and provincial properties in particular.
With retailers increasingly focussing attention on a relatively small pool of core locations and schemes, we expect to see rental growth in the most sought-after streets and schemes but rents remaining relatively flat elsewhere during 2018 as the sector reacts to structural changes.
Industrial & Logistics
The industrial & logistics sector will firmly move into the development phase of the cycle during 2018 with new industrial and logistics facilities due to be delivered and corresponding uplift in transactional activity anticipated.
We expect to see continued appetite for prime investment opportunities in the Irish market in 2018 with investors increasingly focused on good income-generating opportunities in the office, industrial & logistics and residential sectors in particular. We expect to see some further new entrants to the Irish investment market this year.
With a clear need to release more land for sale, now is the optimum time for landowners to bring sites to the market and capitalise on the depth of demand that prevails for well-located zoned and serviced sites.
Unlike 2017, we expect to see some Dublin hotels coming to the market during the next 12 months. If this materialises, we could see up to €500 million of Irish hotels changing hands in 2018, with a sizeable proportion of these transactions occurring off-market.
After a year in which transactional activity was disappointingly low, we believe we will see an escalation in the number of Dublin pubs offered for sale over the course of the next 12 months, which is good news for the many specialist operators seeking to secure new premises in the capital.
With room for some further yield compression and above average rental growth, we expect to see strong appetite for prime opportunities that come to the market in Cork during 2018. We expect to see increased evidence of development activity across a range of sectors in the Cork market over the next 12 months.
Please feel free to contact us if you would like to discuss any aspect of the report.