Tuesday 15 October 2019

Rents rise but Dublin prices still compete

RECENT rises in Dublin offices rents have pushed them up the rankings compared to European competitors

On the other hand, rising capital values for Dublin retail and office properties appear to have had no impact on their competitiveness which means they should retain their allure for investors compared to possible rivals in the European, Middle Eastern and African (EMEA) markets.

These are among the findings in the latest CBRE monitor of rents and yields in more than 50 cities in the region.

CBRE estimates that Dublin office rents rose 3.61pc to €306.70 per sqm in the three months to the end of March.

These are the 25th highest rents – an increase of five in the EMEA league table.

Nevertheless, they are still below those in comparable UK regional cities, where rents range between €351 per sq m for offices in Edinburgh and €382.82 per sq m per year for offices in Manchester.

Following a rise in the capital values for Dublin offices, as yields dipped 75 basis points to 6.5pc in the 12 months to March, these yields are now on a par with those in Birmingham, Bristol, Edinburgh and Glasgow and 37th in CBRE's EMEAleague.

Yields

While prime Dublin retail rents were unchanged during the quarter at €2,115 per sqm, they rose two places in the rankings to 16th and are still ahead of the four British regional cities, which range from €1,607 to €2,211 per sq m.

But values for retail investors in the four UK cities, at 5.25pc yields, are 50bps higher than those in Dublin even though Dublin retail yields fell 50bps over the 12 months to the end of March to 5.75pc

CBRE shows industrial rents pegged at €60 per sqm in Dublin and these are below those of the British regional cities which range from about €67 to €77 per sqm.

On the other hand, Dublin industrial yields have slipped 50bps to 9pc in the last quarter, making them more attractive than the four UK regionals which range from 7pc in Birmingham to 8.25pc in Glasgow.

Irish Independent

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