Monday 29 December 2014

While those early investors have made a fortune, there has been a concern that no new money would follow. Those fears are being shown to be unwarranted.

Published 04/09/2014 | 02:30

While those early investors have made a fortune, there has been a concern that no new money would follow. Those fears are being shown to be unwarranted.

Unlike their American counterparts, European funds are much more risk averse and so take much longer to invest in places where the property market was so low just a short time ago.

"It's a perception issue," said one Dublin agent who has worked with both European and US funds.

"Ironically, the crash and bailout encouraged the Americans to spend here. They saw blood on the carpet and thought they could take advantage of that, whlie the European guys, who you would have expected to have a much stronger sense of the fundamentals here, ran a mile.

"As it turned out, the Americans had it bang on, whlie the French and Germans were maybe blinded by being so close to the crisis," he added.

Prices have risen rapidly, especially in prime areas of Dublin. That has prompted some players, most notably Kennedy Wilson, to ease off its spending here.

"That has what made the Euros' arrival so important," said an industry expert.

"It is confirmation that the recovery in commercial property is sustainable in Dublin at least. We may no longer see the rapid price appreciation that has been a hallmark of the last 18 months, but it shows that the market can maintain itself.

"That is especially true in the office market where demand is showing no sign of taling off."

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