Jones Lang LaSalle predicting further increases in sales of commercial property
"The Irish commercial property market is extremely healthy but the residential property market needs to take some fiscal Solpadeine before returning to wiser ways," claims John Mulcahy, Managing Director of Jones Lang LaSalle.
Residential house prices and land prices are correcting for some time and Mulcahy reckons that this market adjustment will be in the range of plus or minus 10pc, and not the 50pc range mentioned by some cosmic economists.
"Elsewhere -- particularly in the commercial property market -- things are much more optimistic, much healthier, with office take-up almost 10pc higher than in the same period last year. In the Dublin area alone, during the first half of 2007, there was a take-up of over 130,111 sqm of office space from a diverse range of employers including banks, financial services companies, IT companies, legal firms and accounting practices. The prospects for the second half of 2007 and for next year look equally promising, with a number of major space users such as KMPG, Bank of Ireland, Arthur Cox and State Street seeking proposals for suitable office accommodation.
John Mulcahy was speaking in advance of the publication of Jones Lang LaSalle's regular half-year report on office supply and demand in the Irish market.
"The expressions of interest in long-term leases of office space that we are receiving from major employers merely confirms the Central Bank's employment outlook for 2007 and 2008 of 3pc and 2pc growth respectively, which translates to 62,000 new jobs for this year alone. If office accommodation were to be required for just 30pc of the people finding new employment, then this would equate to a requirement of 278,800 sqm of new office space per year -- a conservative estimate given Ireland's increasing move towards a more services-based and therefore office-based economy.,