Property prices could double
PRIME property values could double in value over the next 10 years, a major "futures" conference in Dublin heard this week.
Speaking at the 'Next Decade - Next Challenge' conference, CBRE Gunne managing director, Pat Gunne, said that property values are set to continue to increase significantly over the next ten years on the back of favourable economic and demographic circumstances. The conference was organised jointly by CBRE Gunne and Ulster Bank.
Mr Gunne predicted that prime Dublin office rents will reach ?915 per sq m by 2015. The property expert forecast that Zone A rents on Grafton Street will rise to ?13,450 per sq m Zone A. He predicted that the price of a car space in Dublin will reach ?220,000 in 10 years time, while the price of a large period house in Dublin 4 could hit ?25m by 2015.
Mr Gunne added that there will be a significant change in terms of infrastructure over the next decade but that we are still likely to be lagging behind in European terms in 10 years time. He expects to see significant high-rise development in the city centre skyline and foresees a significant redirection in the Sandyford market over the next 10-year period.
He predicted that the regeneration of Ballymun will significantly improve this area of the city and that the development of Adamstown will set a new blueprint for development in the Irish market over the next 10 years.
Mr Gunne was following in the footsteps of his late father, Fintan Gunne, who 10 years ago made a similar shortlist of predictions which have now proven uncannily accurate.
Marie Hunt, director of Research at CBRE Gunne spoke, predicted that the average price of a three-bedroom semi in Ireland will have hit ?400,000 by 2015 while at that stage a similar property in Dublin is likely to cost in the order of ?525,000.
According to her research on the Irish housing market, she said that there is the potential for oversupply in the Irish housing market over the next few years if developers do not act prudently and curtail the annual level of completions from the record levels of recent years. She suggested that the economy should be aiming to complete between 65,000 and 70,000 units in Ireland in 2005 to cater for inherent demand.
The conference was chaired by Ulster Bank head of property finance. Queried on the outlook for borrowers, Michael Madigan said that the interest rate scenario for the foreseeable future is "benign".
"I would not personally see any interest rate rise within the next 12 months," commented Mr Madigan, Ulster Bank head of property finance.
"If there is to be any increase, I would not foresee it until very much towards the back end of this time frame."
The seminar was attended by over 200 leading property professionals.