Dublin in sixth place in office rental growth league
A lack of office supply will be the main driver of above-average rental growth in European hotspots - with Ireland listed in sixth place for growth.
A new JLL report - 'European Office Rental Growth Hotspots 2018' - identifies ten markets in Europe set to experience supply-led office rental growth outperformance in the next two years.
Amsterdam will see the greatest increase, followed by Stuttgart, Stockholm, Munich, Prague, Dublin, Edinburgh, Barcelona, Warsaw and Utrecht. Just outside the top ten, sit UK regional office markets Manchester, Leeds and Birmingham.
John Moran, CEO of JLL Ireland, said: "Dublin is witnessing an unprecedented surge in occupier demand with record take-up in 2017 which potentially could be surpassed again this year.
"While there has been a significant supply side response, the amount of space under construction is not sufficient to meet this new wave of demand. While there has been very strong rental growth in the past five years, we see no reason why the market should not be entering into a stability phase."
The findings are based on results from JLL's Supply Sensitivity Index, which takes into account seven metrics - such as future supply and rental sensitivity - across 35 European cities over a 20- year time period. The index more deeply explores the relationship between supply and net effective rental growth, complementing traditional macro-economic forecasts.