2022 has so far seen a drop in the amount spent on transactions in the Irish property market according to the latest report from property advisors Savills.
The opening three months of the year saw investments of €762m in the property market, a drop of 38% from the same period in 2021.
While the drop appears quite dramatic, the report also shows that this figure remains 9% higher than the ten-year Q1 average of €700m.
Multi-family assets continue to attract the largest investment share, accounting for 31% of investment volume, or €232.9m, however industrial and logistics transactions make up 23% of investment volumes, the sector's second-largest quarterly market share since this series began.
U.S. investors were the largest buying nationality, contributing 33% of investment volumes, with large international funds increasingly focused on assets above €100m.
In Association with
The quarter’s largest transaction was the sale of a portfolio of three student accommodation assets for in excess of €145.0m, two of which are located in Dublin and the other in Galway.
U.S. investment fund Bain Capital sold the portfolio to Ares Real Estate Group for a sub 5% yield.
The second-largest transaction of the quarter was Union Investment’s forward funding of Primark’s new distribution centre for €128.7m. The transaction generated interest from multiple buyers and traded at a yield of 3.6%.
Rounding off the top three largest transactions of the quarter was Point Square in the North Docklands which sold for €85m.
Kevin McMahon, Divisional Director, Investment, commented: “We continue to see strong liquidity in the Irish real estate market despite volatility in the global macroeconomic environment and increased financing pressures.
"The market continues to benefit from a stable domestic economy, beneficial population trends and competitive property valuations compared to our European neighbours. There is a steady pipeline of assets that are currently on sale and a number of deals in the office sector that are close to completion, which will likely buoy investment volumes for the year ahead.”
