The market for industrial- and manufacturing-appropriate property is expected to show a significant recovery this year, particularly in Dublin, following the second consecutive quarter of a decline in vacancy rates.
According to leading property agent Savills, the second three months of 2013 marked only the fourth quarter in which the vacancy rate for industrial units in Dublin has fallen since 2008, something which the company believes signals a marked upturn in the fortunes of this area of the property market.
A Savills spokesperson added that the last three months have seen the highest proportion of sales transactions since 2008, a sign that prospective buyers believe now is the right time to buy.
“The fundamentals of the industrial sector are beginning to improve, as the vacancy rate falls in the second quarter, take-up levels exceed 50,000sq m for two consecutive quarters and the number of sales increases to 41% of the total number of transactions,” said Savills Ireland’s industrial sector director, Gavin Butler. “The vacancy rate may, finally, be showing some signs of stability.”
Mr Butler also said that Savills predicts overall space take-up in the capital to be between 175,000sq m and 200,000sq m for 2013, with prime capital and rental values likely to remain steady for the remainder of the year.
Take-up of industrial space in Dublin amounted to approximately 65,000sq m in the second quarter, only the second time in five years it has exceeded 50,000sq m.
South-west Dublin was a particular hot-spot of activity, accounting for over half of all deals done.
Just 19% of the amount of new space coming to the Dublin market was located in the north-west and south-east of the city. Source: Irish Examiner