CBRE Ireland Bi-Monthly Research Report November 2019
In our last report in September we commented on the particularly large volume of transactions in legals across all sectors of the commercial property market.
Over the course of the last two months, some of these transactions have completed and in turn boosted Q3 transaction volumes. However, with only two months to year-end, there is still a large volume of transactions due to complete. There will be a flurry of activity over the coming weeks to get transactions completed by year-end although inevitably some transactions will now carry over into 2020.
Interestingly, despite heightened Brexit noise over the last two months, commercial property activity has been brisk across all sectors of the Irish market and at this juncture, there is good visibility on pipeline for the year ahead.
Budget 2020 increased the rate of stamp duty on ‘non-residential’ property transactions from 6% to 7.5% from midnight on October 8th - a measure which will have implications for property values.
The focus for all sectors of the market is now to get deals across the line before the end of the year. Activity and demand in the occupier sectors of the market remains strong as we approach year-end which bodes well for 2020. From a delivery perspective, increases in construction price inflation and the cost of adhering to new Near Zero Energy Building (NZEB) regulations from November 1st has added to viability concerns in several sectors of the market over recent months.