Office construction up tenfold in a year in the capital

A crane at a building site in Ballsbridge, Dublin 4. Photo Iain White / Fennell Photography

Colm Kelpie

Office construction in Dublin surged last year, jumping tenfold on the completion levels seen in 2015, property firm HWBC has said.

Prime office rents jumped 9pc last year, with even rent for car parking spaces on the rise.

HWBC said a city space now yields an estimated €4,000 per annum - up 14pc in the past 12 months. Car parking spaces in the suburbs are estimated to be offering an annual rental rate in excess of €1,500 per space.

The firm said it expects office construction this year to continue its rise, as completions are expected to increase 184pc with a total of over 2.3msq of space expected to be finished. However, it said 55pc of this is already pre-committed.

HWBC said it expects prime office rents to rise by 8pc.

Tony Waters, HWBC managing director, said there is potential for up to five million square feet of office space to be delivered in Dublin over the next few years. "However, much of this space will not be delivered without significant pre-lets in place, so at current levels of construction we see no risk of over supply as happened in previous cycles," he said.

"Whilst rental growth in the office market in Dublin has eased from the double digit levels of 2012 to 2015, prime office rents rose a very respectable 9pc and will grow by a similar level in 2017."