Property Fund update, Q1 2019

Michael Hayes
Friday, June 28, 2019

The Q1 2019 update on the Irish Life Property Fund is now available.

  • The Irish property market maintained a high level of activity in the first quarter of 2019, with divergent trends emerging across sectors.
  • Demand for prime offices (particularly in Dublin city centre) stayed very strong, underpinned by high levels of occupational demand and take-up. Prime office yields ranged from 4%–4.5% in the central business district, which is supported by several large transactions undertaken by international investors.
  • Industrial and logistics property, which historically made up relatively low proportions of institutional investment portfolios in Ireland, continues to grow in appeal. But yields have been falling; prime yields are close to 5% for modern stock.
  • Institutional investment in the residential private rented sector has continued in 2019.
  • Fears over changing consumer behaviour as online retailing increases, coupled with negative retailer performance in the UK, have dented investment demand for retail assets, resulting in deteriorating sentiment – particularly for secondary locations.