Shops in capital fall to 12th cheapest across EMEA area
Dublin retail properties are now the 12th cheapest to buy from among 46 cities surveyed in Europe, the Middle East and Africa (EMEA). Only a few years ago they were among the top 10 most expensive.
With yields of 6.5pc, Dublin shops are now cheaper to buy than similar shops in the British cities of Manchester, Edinburgh and Birmingham with which they were on a par 12 months ago. The latter cities have seen their property values rise in line with a partial recovery in British commercial property values while Dublin retail prices have remained unchanged since they suffered a 61pc drop in values in 2008. These are among the findings in the latest EMEA survey from the global property consultancy CB Richard Ellis.
In contrast, prime Dublin retail rents have not fallen as low in the rankings -- at €3,525 per sqm these are down from fifth to seventh most expensive rent -- still placing them ahead of such major cities as Rome, Vienna, Berlin and Frankfurt. Over the past 12 months, Dublin rents fell 25pc -- the fifth sharpest fall over that period. Dubai showed the sharpest fall, down 50pc to €511.81 per sqm; while Glasgow showed the highest rent increase -- up 4pc to €1,990 per sqm.
In the office market, only Moscow has seen a sharper fall in property values than Dublin. Since the peak, the Russian capital's office yields moved out 450 bps (basis points) to 12.0pc while those in Dublin moved out 375bps to 7.5pc.
Consequently, Dublin's ranking in office prices has improved slightly over the 12 months from seventh most cheap offices to the eighth cheapest.