Friday 18 August 2017

Lowest returns since 2013 - JLL

Irish property returns hit 4.1pc in the first quarter of 2015
Irish property returns hit 4.1pc in the first quarter of 2015
Peter Flanagan

Peter Flanagan

Commercial real estate returns slowed to 4.1pc in the first three months of this year, a new report has found.

The latest JLL Irish Property Index for Q1 showed commercial property returns hit their lowest level since the third quarter of 2013. Even so, return overall returns ver the last 12 months remained strong at 35.1pc, mostly driven by the second half of last year.

The annual return remains far below the highest on record, from 2007. That market is unlikely to be seen again any time soon though, considering that was driven by the unrealistic prices towards the peak of the property bubble.

Capital values increased 2.4pc in the quarter and 25.9pc in the year. Offices had the greatest quarterly increase at 4pc, followed by industrial and retail.

JLL Ireland head of research Hannah Dwyer said that "after such strong results last year, which were at record levels, it is of no great surprise that results for the first quarter of 2015 haven't performed as strongly. That said, Overall returns are showing steady growth, driven by modest increases in capital values across all sectors."

Rental values were positive across all three sectors for the fourth consecutive quarter.

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