Property Industry Ireland (PII), the Ibec group that represents businesses working in the property and construction sector, has launched the latest edition of Property Watch, an initiative of Property Industry Ireland, in association with AIB and prepared by DKM Economic Consultants. The report outlines the state of the Irish property sector at the end of Q2 2016.

Findings included in the report note that in the housing sector housing completions up 17% YoY; New housing commencements were up 33% YoY; the 2016 forecast is for 14,000 completions; Mortgage drawdowns for house purchase increased 24% QoQ; and Residential rents were up 4% QoQ

Looking at the Dublin office market and Dublin prime office rents were stable QoQ but up strongly in recent years; Dublin office vacancy rates are falling but significant variation with overall vacancy rates reported to be down to between 6.7% and 12% in Q2. The supply shortage in the Dublin industrial market is expected to continue to push rent up in the second half of the year

In terms of Regional offices market, take-up in the Cork office market was around 4,000m² in Q2 and there was no take-up in Galway while activity in the Limerick market remains subdued. Prime rents were highest in Cork at € 290/m², less than half the corresponding level in Dublin and Prime rents are lower in Galway at € 220/m² and lowest in Limerick at € 172/m².

For a more extensive article see our September/October 2016 Issue of Irish Construction Industry Magazine available on subscription, contact Linda Doran