Monday 26 August 2019

Land sales fall, but prices remain steady

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Donal Buckley

Donal Buckley

As many as 16 land sales have taken place in Ireland during the first three months of this year valued at a combined €155m, according to research by property consultants CBRE Ireland.

These figures include development land traded both on and off-market. The number of deals has fallen sharply from the 37 transactions recorded during the first quarter of 2018.

However the value of the transactions so far this year compares relatively favourably with the €167m completed in the same quarter last year. On the face of it that seems to suggest that either more valuable land was sold this year or that land values have increased considerably or both.

However Marie Hunt of CBRE advises against comparing particular quarters with one another as one large transaction can skew results significantly.

"Last year saw a lot of strategic land sales which boosted spend whereas what has completed in the first quarter of 2019 comprises smaller lot sizes," she adds.

Over the 12 months of 2018 almost €1.5bn of land sales occurred in the Irish market as a result of the completion of some strategic land sales.

Peter Garrigan, director in the Development Land team at CBRE said, "Activity in the first quarter of 2019 in the development land sector has been brisk with considerable off-market trading underway and a focus on closing out sales that for whatever reason didn't conclude last year.

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