Property sales tipped to hit €3bn in 2018
Property agent JLL has raised its forecast for the level of investment in Irish property for 2018 from €2bn to just under €3bn following a particularly strong second quarter in which nearly €1bn worth of commercial real estate changed hands.
According to JLL, 35 transactions carrying a combined value of €955m took place in the three months to the end of June.
While that figure was only slightly more than the €933m invested in the first quarter of this year, it represents a 300pc increase on the equivalent period in 2017.
The largest transaction in the second quarter saw the off-market sale of a portfolio of Dublin office investments for €160m.
The second-largest transaction was Westend Retail Park, Blanchardstown, which was sold by Green Reit to Deutsche Bank's asset management arm, DWS, for €147m. The third-largest deal in the second quarter was Cairn Homes' sale, for €106m, of its PRS (Private Rented Sector) scheme at 6 Hanover Quay to Carysfort Capital.
Dublin remains the focus for investors, accounting for 95pc of total investment volumes in Q2 (€908m over 25 transactions). Cork was the second-most dominant region for investment, attracting €39m of investment over six transactions.
John Moran, CEO and head of investment at JLL, said: "Year-to-date volumes have now reached €1.8bn - more than twice the volumes transacted in the first half of 2017.
"In particular we have seen significant increase in high-value assets trading, with the average deal size for Q2 2018, at €27m.
"In Q2 2017, the average transaction size was €7m.
"In light of recent investment trends, JLL are now forecasting year-end volumes to be closer to €3bn."