Spend on Development Land Increases in Q3

CBRE Ireland today confirm the total amount of spend on development land in the Irish market during the third quarter of 2023. Total land sales reached almost €80 million across 18 transactions in the three months to the end of September. This was an increase of almost 30% compared to the previous quarter and reflects some positive signs of developers and investors starting to adjust to new pricing levels, that have been the result of higher financing costs.

Developers continue to be particularly focused on sites in Dublin and the Greater Dublin Area that have ability to deliver residential housing, where end-user demand remains incredibly robust. While there has been significant demand for sites with the benefit of planning permission in place, there have been some notable transactions for large scale residential sites without planning permission in the last quarter. This includes the sale of a 62-acre development site at Rathbeale Road in Swords, with the potential to provide for in excess of 700 units, as well as the sale of an 11.5-acre site in Celbridge, Co. Kildare, with development potential for in excess of 150 units.

We have also recently seen more opportunities being brought to the market for repurposing of existing commercial buildings in city centre locations. This includes the former Ulster Bank building on College Green, Dublin 2 and also an office building at 5-9 South Frederick Street both of which have potential for hotel or office redevelopments.

Outside of the residential sector, a notable hotel development site at Ushers Quay in Dublin 8 was sold in Q3. The site has planning permission for a 100-bedroom hotel and was acquired by Whitbread plc. to be operated under the Premier Inn brand.

Darragh Deasy, Associate Director on the Development Land & Consultancy team at CBRE Ireland said, “it was encouraging to see an uplift in land sales this quarter. We are continuing to see strong demand from a wide range of purchasers, for both sites with and without planning permission. CBRE Ireland’s development land team were delighted to close three transactions during the last quarter, accounting for nearly 50% of all land spend. At this point we are particularly cognisant of the upcoming valuation date for lands under the residential zoned land tax and the implications that this will have for landowners. While we welcome the cabinet approval of the Planning and Development Bill 2023 and the potential benefits this could provide to the Irish planning process.”